Now you must be wondering, even if you become a swing trader, how will you be successful?

You don’t need to panic as we have got your back by providing some ways to become a successful swing trader.

One of the best parts about swing trading is that it is enjoyable. But just like all other businesses, even in swing trading, you need to make sure that you adhere to some rules of trading.

It is mainly because these rules help you in sticking to the game. If you fail to have capital, you can’t trade then. The thumb rule for swing trading is survival.

Surviving is way more than just managing the risk, but it is all about following your directions and plans too.


Daily Routine – To Become a Successful Swing Trader

Ideally, swing trading is a fusion of fundamental and technical analysis.

Become a Successful Swing TraderThe fusion plays a crucial role for traders as it helps in grabbing the influential movements of the price besides avoiding free time.

Additionally, the advantage of this trading is that it efficiently uses capital and also offer higher returns.

On the other hand, the disadvantage is, it is more volatile, and again, the swing trader has to pay a considerable amount of commission.

If you are a standard retail trader, then you may find swing trading complex. Expert traders most likely have a lot of experience and information and also charge minimum details.

But, they don’t have access to all investment tools, and the risk is even less as per their capital available. Massive institutions not only trade in huge sizes but also enter and exit the stocks rapidly.

To take advantage of the profit, some of the retail traders who are knowledgeable tend to take advantage of such things.


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    Pre-Market Routine – To Become a Successful Swing Trader

    Often, the majority of the swing traders start their day in the morning around 6 am EST. It is quite early than the opening bell.

    Experts say the time before the opening bell is pretty much crucial for traders to get those vibes of the market in an overall sense.

    They can do a lot of things during this time, that is, before the opening bell, including looking for future trades.

    It can also include making some routine watch list or looking for current positions.

    Overview of the Market – Traits of a Successful Swing Trader

    Ideally, for traders, the day’s first task is to learn about some current news and- going developments in the marketplace.

    You can do this quickly by just logging on to your TV and switching on to channels like CNBC.

    Thanks to the splendid technological advancements, you can catch up on some latest news on some reputable websites.

    As a trader, you have to keep track of some essential things like:

    • Market sentiment in general terms like is the market bearish or bullish or is the inflation prevailing, or are there any trading sessions from overseas.
    • Sentiment prevailing in a specific sector, for example, growing or hot sectors.
    • Existing holdings like earnings or news.

    Look for Future Trades – Traits to Become a Successful Swing Trader

    After learning about some news on the existing holdings, then traders look for the future trades that they can make on that day.

    Ideally, swing traders use financial catalysts when it comes to entering positions. The traders then use technical analysis if they want to exit the positions.

    Tips for Finding Great Financial Catalysts:

    Unique Opportunities

    One of the best ways to find economic catalysts is through SEC filings and headline news. Some of the examples of options include buyouts, bankruptcies, takeovers, insider buying, mergers, etc.

    You can ideally find them by keeping track of specific SEC filings like the S-4 and 13D. On some of the sites, you can do them, and after the filing is complete, you can also get notifications from the site.

    No doubt these opportunities come with a lot of risks but also they give a tremendous amount of return.

    The situation prevails where the swing trader is into selling while the majority of the others are into buying. It is an attempt to keep the overreactions to headlines away.

    The Sector Plays

    You analyze the news or consult some financial experts to understand which of the segment are operating correctly. For instance, you can check famous funds or look at the latest headlines.

    Another opportunity available for swing traders as of now is chart breaks. Ideally, they are stocks traded strongly.

    To predict the breakdowns or breakouts swing traders mostly look for a plethora of chart types, including Gann levels, Wolfe Waves, triangles, channels, etc.

    You need to know that chart breaks are only necessary if there is plenty of interest in the underlying security.

    After a breakout, these types of plays tend to include the swing trader buying. And after the next resistance level, selling takes place.

    Create a Watch List – Traits to Become a Successful Swing Trader

    As a swing trader, you must make a watch list of securities of a particular day. Ideally, they are simple securities that feature a fundamental catalyst.

    Some of the traders tend to keep dry erase boards with some elements, including target prices, opportunities, entry prices, and stop-loss prices.

    Check Current Positions – Routine of a Successful Swing Trader

    If you are a trader, then in the pre-market hours, you must keep a tab on current positions and also review the headlines.

    You need to mainly do this to know that overnight no such thing has happened to the stock. Simply type the stock symbol, and you will have all the information at your fingertips.


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    During Market Hours Activity – To Become a Successful Swing Trader

    Typically, the market hours feature 9:30 am – 4 pm EST. During this time you can watch and trade. The majority of the swing traders see level 2 quotes that show who is into selling and buying.

    You can also see the number of traders. During the market hours, people from the world of trading can understand who is making trades.

    You can also get some knowledge about fake bids. Often traders start looking for exiting the market when they find a viable trade.

    They do it using technical analysis. If you want to take on more risk, then experts say you must not adjust the position.

    If you wish to continue trade in bullish markets, then you can only change the levels that take profit.

    When it comes to entering a trade, then you must know that it is an art and not only science. Basically, it depends on the trading activity of the day.

    Management and exiting is an exact science.


    After Hours Market Activity – To Become a Successful Swing Trader

    Rarely, the after-hours trading use time to place swing trades because the market is relatively illiquid, and spread is also challenging to justify.

    Performance evaluation is one of the most elements of the after-hours market. It is essential to record all the ideas and trades carefully.

    Ideally, it is done for two purposes, including tax purposes and performance evaluation.

    One last time, the traders must review the open positions and pay some specific attention to announcements after – hours.

    Also, traders must look for some other events which impact their holdings.


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    How to Become a Successful Swing Trader? – Conclusion

    Hence, you can adopt the daily routine as a trader so you can improve trading performance. Above all, it will help you to look for some other preparation resources.


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