With swing trading becoming more popular, the media is booming with different tips and even strategies to help you succeed.
The problem is, not all of these tips are effective – the experts aren’t going to simply give you access to their biggest secrets for free, after all.
After some research and many hours’ worth of planning, I developed a simple swing trading strategy that has helped me gain a significant advantage in terms of initiating swing trading transactions.
Today, I’m here to talk to you about why it is important to choose a simple swing trading strategy.
If you are only starting out I will give you a quick breakdown of a really basic strategy that I have been making great profits with.
I delved into swing trading a few months back.
Things weren’t really great at the start.
I was losing more money than I could really afford to lose.
After I got down to the last few dollars in my account, I decided to take a break from my operations and spend some time educating myself.
During this time, I learned quite a lot about swing trading strategies and how these techniques can be used to maximise profits.
What I also noted is that there are a lot of these strategies out there – and many of them are extremely complex.
For the average person who is just getting started with swing trading, following one of these more advanced strategies could easily blow up in their face.
This was when I started to look at the simpler techniques out there that can be used to help me make more profits from my swing trading transactions, while still giving me the ability to do some research and to have fun in the end.
In this post, you’ll discover the simple swing trading strategy that I personally used to increase my gains on trades and, of course, to limit my losses.
Both of these factors are important if you ever want to call yourself a successful swing trader.
Why Should You Follow A Simple Swing Trading Strategy?
We should really start by looking at why you should consider using a simple swing trading strategy – in fact, why consider using a swing trading strategy at all?
The answer to this question is easy. A strategy will form a crucial part of your trading operation.
Without a strategy, and you won’t know when to make a trade, what pair to trade, how to do research or, when you do want to conduct some research, you won’t know what to look for.
With a swing trading strategy developed, you will be able to have more organization and structure in your efforts.
You will know which trading pairs you are most interested in and, with this in mind, research becomes much easier.
You’ll know exactly what you should look for when it comes to research, what to search for, and what particular news headlines will have an impact on the trades that you have initiated.
Now, when it comes to using a simple swing trading strategy – have you seen some of the strategies out there?
Many of them are so advanced that you need to understand a complete list of terms and “jargon” before you’ll really be able to truly understand the particular strategy.
For a beginner who has not yet been acquainted with the entire trading industry, understanding all of the terminologies that are used in the more advanced strategy can be very complicated.
When you decide to rather opt for a simpler strategy, then you will be able to understand better how everything works.
You’ll also end up less confused and more empowered to quickly identify trends and to determine when you should ideally initiate a new trade for the best potential to profit.
How A Simple Swing Trading Strategy Helped Me Succeed
There are many strategies out there that can be considered relatively simple, but not all of them all equally effective.
I have done extensive research and came up with a strategy that has helped me greatly in increasing my profits and reducing the number of “bad” trades that I make in general.
The specific technique that I decided to follow after extensive research is commonly called the Swing Trading Options Strategy.
This strategy holds no significant complications that may confuse you.
Once you understand the basics of swing trading the options strategy, the entire process is fairly simple.
As long as you dedicate some time each day in order to do a little research and to watch the markets to ensure you get in and out of a trade at the right times.
With an options strategy in place, there is a series of benefits that you can expect.
These include a high return on the initial investment that you have made, along with the ability to get started with a lower initial investment compared to some of the other strategies that you can utilise.
Furthermore, with an options strategy, your risk exposure is also more limited compared to other strategies, which means you are not at as high of a risk to lose your entire investment.
Options Swing Trading Strategy
Options swing trading strategy involves two different “options contracts” that you can utilise during your trading operations.
This includes a call option and a put option.
With an options trade, you will initiate a trade on an underlying security, which often include stocks, but may also consist of commodities, EFTs, and indexes, depending on the specific pair that you wish to make a trade on.
Let’s consider the two different options contracts that you are able to initiate:
- Call Option: With the call option, you get to buy a specific type of stock, be it currency or another commodity, at a specific price. The price is usually called the “strike price.” You also get to define an expiration date on the trade that you initiate.
- Put Option: A put option is literally the opposite of what a call option is. With the put option, you are not buying the stock but rather given the right to sell a specific type of commodity or stock – also at a “strike price.” With the put option, you also get an expiration date where the trade will expire.
Now that we have that underway let’s take a look at a simple step-by-step process that you can follow to use options swing trading strategy to profit and to limit your risk of loss.
- The first step that you will need to take when you wish to invest in options trading is to find the most ideal stock that you can make these investments in.
This is a particular area where you should spend some time in – you should find the most appropriate stocks. Look at lists that can give you an overview of leading stocks for a specified period of time.
- Once you have identified potential stocks that you would like to invest in, consider the market for the stock.
Look at the latest news regarding that stock and see where the stock might be headed.
This will give you a good idea of whether to place a call option or a put option contract on the stock.
- You should ensure that you buy at the right strike price. With established trading platforms, you will usually be able to set the desired strike price.
Once the price is reached in the particular stock you wish to invest in, and the platform will initiate the trade for you.
- The next step is to choose an appropriate expiration date. With swing trading, you will likely end up only choosing a few days.
Once this process has been completed, you will need to wait for the expiration date to be reached in order for the trade to be ended.
At this time, you will be able to gain more details on the specific amount of profit you gained or the loss that you have suffered.
Using Signal Software For Better Gains
For many people, developing an effective strategy that works for them can be really hard.
I have found a really good signal software that has helped me tremendously in my journey toward a more successful swing trading career.
The software is called Rapid Trend Gainer, a simple application that you install on your computer, which then hooks up to a trading platform and gives you very accurate signals for trades that can help you gain more profits.
Rapid Trend Gainer is much more affordable than a lot of the other signal that I have found on the market.
Another major advantage that should be considered is the fact that this software has provided me with signals that were much more accurate than some of the other signal software that I have used in the past.
Swing trading might be a popular technique used for gaining profit in the forex trading industry, especially amongst people who have a limited amount of time available to spend on their trading career.
But without the right strategy, you could easily end up losing money.
I have been following a very simple swing trading strategy for several months now and have seen my entire portfolio turn around, for good.
Simply follow the advice that I have given you here in order to equip yourself with a strategy that does not overcomplicate things, but still gives you an opportunity to increase your profits.