/biz/ - Business & Finance

>>18797302
Swing trading is fairly calm most of the time. You're just trading the middle 50-80% of any given daily trend. Enter after there is some show of support and a break out of the bottom range, exit on the back side of the peak when balance looks to be tipping in bearish direction. Do it over and over and over again. Some of those trades are going to be a loss, usually on particularly convincing fakeouts, a ton of them are going to be break even or slight few percent gain, and some are going to be monster bull rushes. Most important thing for me is to trust my strategy and acknowledge that it is based on statistical probability over time, that I shouldn't be getting mad or, worst of all, try to knee jerk change strategy because I'm mad.

That's pretty much it. You can use stop losses on entry and trailing stops on rising winners if you like but I'm iffy on the long term advantage there. Stop losses seem to knock me out at pretty disadvantageous spots, worse than if I just waited for my TA to properly form a sell signal for me. The best chart pattern exit on a long for the way I trade is the double top. If the second peak comes within a reasonable time period of the first, my TA stuff will generate a nearly perfect sell signal. Unfortunately, the worst pattern is closely related: the triple top. On triple top I'll get the good exit but it will be followed immediately thereafter by a guaranteed to take a loss buy signal on the run up to peak three. Those are the breaks tho.