Swing trading using momentum burst
Realistic expectations is key to trading momentum bursts. It is for people who want to capture the high probability part of a trend move. It is not for those who have unrealistic expectations.
This is a recent trade I did for 10.29% profit in 3 days. I had very tight stop on entry. The trade did almost 4 times my risk (4R). Same trade others did and exited at break even or in some cases very small profit because they had wide stop and expecting a big move.
How you approach trading all depends on your selected setup. I entered this trade with a mindset of 8% to 20% profit potential in 3 to 5 days. That target is based on study of thousands of past similar setups study. So once I had 10% plus profit I aggressively moved stops to protect it and got stopped out.
These kind of swing moves are very common in stock. A stock once it enters momentum phase can have 3 to 10 such moves during its entire trend move. One of the trading approach used by many people is to try and capture part of the move instead of focusing on trying to capture entire trend move. This approach helps you keep drawdowns small and use very tight stops. It requires doing hundreds of trades.
Alternative approach used by some traders is to try and capture large trend move. It requires different kind of setup definition and mindset to trade and expertise. Typically trend traders have lower % of their trades working as they often get stopped out. But the few that work can make big moves.
Every trader has to find methods that work for them . Once you find an approach that works for you then you have to develop a well thought out process to exploit that method.
If you are serious about making money trading study approaches which have worked for others and build your methods around it, it will save you years of frustration and losses.