All active traders are swing traders. All of them try to find a slice of a trend to enter and exit. Swing trades generally last from few days to few weeks.
Basic objective of swing traders is to find continuous stream of ideas. The profit in swing trade is small per trade but by rotating their capital multiple times the small gains compound.
Different traders use different terms to say same thing about swing trading. But the basic elements of all swing trading strategies are:
- A method to determine which stocks should be selected for swing trading. (vehicle selection strategy)
- A method to determine entry.
- A method to put stop
- A method to exit the trade
- A method to determine how much to risk
Together these elements form a trading setup.
A method to determine which stocks should be selected for swing trading