Here Is My Strategy for Swing Trading

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Trading Strategy Simplified

o Over the last few months, I believe I have finally figured out how to swing trade stocks using fundamentals (most importantly), technicals (for entries and exits), and indicators to show me more data on that stock (remember though, price action > indicators, so let the market do the talking).

o So lets break this down, when I first started I tried using all sorts of MAs, EMAs, VWAP, Bollinger Bands, ETC. but for ME, I find that these indicators made my chart too crowded and therefore over-complicating the issue. I try to think like “big money” now. If you can imagine that in your account you were responsible for 100 million dollars, you would want to invest in “good” or fundamentally solid companies. So why think any differently about your measly robinhood account if the goal is to make money?

Strategy

o First and foremost, any company that I want to trade/invest in, go to their website (I really only play “good stocks)! See what the offer, see if they are a leader or an innovator, or whatever their “thing” may be, look around on the website to get a better understanding of the company and what they do.

o Second, I got to yahoo finance and just check over their fundamentals (on the sheets that I had posted previously, use that as a guide). So I want to see good y/y growth, q/q growth, increased gross revenue, good ROA/ROE/ROI, stuff like that. Information that shows that a company is financially healthy and can continue its success.

o By the way some examples of “good” companies that I invest/trade/follow are: SHOP ATVI AAXN ROKU SEND TEAM TMUS etc. Typically mid-large caps, anywhere from 20-250$ or so. I try to stay away from speculative plays, biotech, and pennies. Obviously you can make good money trading all three, but for me, it isn’t appealing.

o Third, plot out the technicals (support/resistance/mental stop/PT) so that you have a PLAN. If you make a plan, write it down, you are doing it objectively. After that, stick to the plan and don’t get emotional over the trade. Let your winners ride, cut the losers quick (2à1 ratio), and don’t over think it!

o Fourth, when plotting these technicals, I ONLY look at the daily charts; to me the intra-day stuff isn’t important. Most of us are busy and cant pay attention to the intra-day stuff anyways. If you want, just set alerts on your TOS or whatever app you like about a stock, and get a notification if it crosses a

certain threshold. Again, you can use different times frames, but for me this

is what works.
o On the daily time frame, the ONLY indicators I use are 26MA (roughly a

month), 50MA (big $$ indicator), 65MA, 200MA (big $$ indicator).
o Fifth, when looking at my chats, im trying to find “good” stocks that are either

about to breakout (ROKU AMD TEAM), and you can “see it.” The patterns are very similar, and when you couple that with good fundamentals, you have a very good chance of making good money. Here are a couple examples of what the “set up” looks like.

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o Do you notice how these stocks (AMD TEAM ROKU), have all followed a nice trend up? So remember, the trend is your friend, and if you have good fundamentals on a company, you can add to an over-reaction (for example NKE and Kaepernick).

o Quick example of WHY YOU NEEEEEEEEEED fundamentals for a stock to continue moving higher. Lets look at ATVI which finally completed the Cup and Handle.

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o Notice the Cup and Handle and then the breakout after, so technically speaking, that is a textbook example of a cup and handle, BUT it only happened because of NEWS with ATVI. They had an upgrade yesterday, which was the CATALYST to that technical pattern. So playing technicals ONLY can get you in trouble that is why it is extremely important to couple your technicals with FUNDAMENTALS. If you need more references, look back at other sheets I have posted, or just use Google/YouTube/etc. to understand more about technicals. The internet is a powerful tool for investors, use it!

Key Points

o Keep it simple.
o Think like a whale.
o Visit the companies website.
o Use fundamentals as your base and technicals as your entry/exit.o Don’t solely rely on technicals, use them as a tool.

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Feel free to DM questions if you want, i have more educational material too if you need any. Cheers

Submitted September 12, 2018 at 12:30PM by coquinaa https://ift.tt/2QpCvjb