My 6 ideas that will enhance your swing trading strategy. Keep it simple and be a better swing trader.
Here are 6 tips on how to become a better swing trader. Start thinking for yourself, ignore the sheeple monkey analysts, spend less time scanning for random crappy stocks, less is more when it comes to indicators and stop going all in on a single trade upon entry, aka, have a plan!
1. Pay less time reading social media and fake news, it’s all negative and negativity sets your mind up for failure. Change the way you think about news and be skeptical of the validity of all news articles and headlines. Stop being emotional about news. Use it to your advantage. Think for yourself!
2. Ignore the story telling analysts. They may seem like fancy people with fancy degrees and it may appear that they know what they are talking about but lets face it, analysts haven’t changed in 20 years. They are stuck in their old ways of thinking. Spend less time on CNN, CNBC TV, be your own analyst and use common sense.
3. Spend less time scanning for random stocks. Sticking with well established ETFs and blue chip companies will save you headaches in the long run. Swing Trading random crappy stocks is just asking for trouble.
Stop watching YouTube videos on how to scan for swing trading setups. Most if not all of them will fail you and will not make you consistent income. Here is a $400 a month strategy to help get you started.
4. Stick to using a basic chart. The RSI and two moving average indicators is all you really need. Anything else will just add complexity to your charts, make you second guess your decisions and keep you up at night thinking about indicators that *might* help you make more money. All indicators use lagging data and will never predict the movement of a stock. All they can do is tell you what the stock is currently doing. KISS it! (Keep it simple stupid).
5. Stop going all in on your entry and be patient (ok that was two in one…). Use the RSI to determine an initial entry point and use the moving averages to continue to add to your position. If you are trading strong ETF indexes like VOO, SPY or even SPLG you should already know that history has proven that these will always recover.
6. Make a plan! Budget a certain amount of money for a swing trade. Put 20% of that budgeted money into your initial entry when the stock is over-sold. If the price keeps dropping, add another 10% every couple hours or even days. This lets you get in at a lower and lower price and being that index ETFs always recover, it’s just a matter of time before you cash in. Patience will pay!