Learn Easy Swing Trading Strategies
There are several different easy swing trading strategies and there are several that are not so easy.
One thing to keep in mind when you start swing trading or any type of short term trading, is to make sure to firmly understand, that there is no correlation between the difficulty of a specific trading method and the profit potential of such method.
Let me share a personal story with you that will put all this together. Several years ago, I think it was in the mid nineties, I picked up this publication, I think it was called Trader World. I noticed a trading competition that they were promoting. Without getting into names, I saw one trader that was doing exceptionally well in the competition. I did some limited research (remember this was before the internet) and found that he took on limited students.
I proceeded to hire this trader for a few sessions to show me his technique. He used a modified Elliot Wave theory that was so complicated, let's just say it was not one of those an easy swing trading strategy as I was expecting. I could barely keep track of what he was showing me. He did not have it programmed into computers, back then Trade Station was not too advanced and I had to do everything by hand. It would take me hours to do calculations to figure out what the next set up would be.
Not only was I turned off to this strategy, I became turned off to the markets and felt really burned out. It would take me over 1 day to calculate a simple entry and exit strategy. Not only that, after trading with it in real time I came to discover that it wasn't all that profitable.
A 19 year track record. Average annual returns above 50%. No losing years - even in 2008. And, if you started with just $1k - you’d be a millionaire right now.
How does it work? I’m going to show you right now…
Profitable Swing Trading Does Not Have To Be Complex
I quickly dropped this strategy, before it bankrupted me and went back to trading my simple patterns that I was able to calculate in seconds. My trading performance improved and my confidence got better as well. If you are wondering what ever happened to the trader I hired to help me, he lost the trading competition and no one ever heard from him again.
The moral of this story is complicated strategies do not equal more profitability. The more complex something is too learn the greater the odds that something will be confused or misinterpreted. This is the last thing you want when your emotions are in the middle of a trade.
You want to make sure your entries and exits are very clear so that you don't get confused during vulnerable times. If your trading plan looks like a complex research paper, it would most likely throw you off and make the trade that much more complex and confusing.
My advice is to stick to simple strategies that you can easily figure out and understand. There has never been a study that says simple are less profitable then complex algorithms. As a matter a fact one of the best known traders in the world trades simple 50 day breakouts and he's been doing so for 40 years.
My recommendation is to stick to basic easy swing trading strategies such as 4 day retracement strategies and Tail Gap Strategies and other simple pattern based or simple indicator strategies.
These are very simple basic swing trading ideas that have predetermined risk and entry levels. They are easy to manage and execute, moreover there is no ambiguity to deal with, especially when you are in the middle of placing trading orders.