Swing Trading


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Swing trading helps you capture short term moves in the market and make the most of your trading efforts. Before you begin it is important to understand the basics of Swing trading as well as important factors that must be kept in mind to trade effectively.
For a detailed description on Swing Trading visit our blog post: http://kotaksecurities.blogspot.in/2012/08/understanding-swing-trading-60004.html

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Swing Trading

  1. 1. Swing Trading StocksDemystifying
  2. 2. IntroductionSwing trading is a style of trading stocks that attempts to capture short term moves in the stockmarket. In its simplest form, swing trading is basically repeatedly buying and selling of stocks nearthe up or down price swings caused by price volatility.
  3. 3. Understanding Swing Trading When to trade• Stock market over the • In a market thats moving past few years has been up, swing trading will help you catch the big move. In aknown for its movement • Swing trading allows you market thats moving down, in trends and swing to trade stocks whether swing trading will help you trading allows you to the market is moving up, catch the reversal and in take advantage of these moving down, or sideways markets, swing trends. moving side to side. trading will help you do both, catching both the big moves and the reversals . Market How will it Movements help
  4. 4. Swing Trading: Suited for whom? Day Trader Independent TraderSwing trading is ideal for independent traders because unlike day trading you donthave to be glued to your screen all day making hundreds of trades. With just a fewtrades a week, a few minutes a day, swing trading puts your money to work whenthere are real opportunities in the market.
  5. 5. How different is it from other styles? Day Trader Swing Trader Trend Trader Trend trader examines the long-term Anywhere from a few seconds to a Swing traders hold a particular stock Stock fundamental trends of a stock or few hours but never more than a for a period of time, generally a fewholding day days or two or three weeks index, and may hold the stock for a few weeks or months Rely heavily on signals from chart Rely heavily on signals from chart Rely on long term assessments, marketBasis of patterns and technical indicators to patterns and technical indicators to and industry reports and long termdecision time their entries and exits from time their entries and exits from trend analysis securities. securities. The goal of day trader is to profit The goal of swing trading is to profit The goal of trend trading is to profit Goal from short term daily moves of the from short but powerful moves of the from long term and powerful moves of stock market stock market the stock market
  6. 6. Using Swing Trading Identify right • The best candidates are large- cap stocks that are among the market most actively traded stocks on • The swing trader is best the major exchanges. In an positioned when markets are active market, these stocks will going nowhere - when indexes swing between broadly defined rise for a couple of days and high and low extremes. then decline for the next few days only to repeat the same general pattern again and again. Identify right stock
  7. 7. Advantages of Swing Trading
  8. 8. Dos • Markets have a way of humbling even the most skilled traders if they let their egos get in the way of their trading. Some traders hold onto losing positions in the hopes that they can eventually break even — a policy that devastates an account in theAdmit to losses long run.when they occur • Whether the person is your childhood friend or a Dalal Street analyst, always take the required precautions. Remember, Dalal Street is a community and analysts send out their opinion reports to hundreds, if not thousands, of traders and portfolio Try to insulate managers. Reading those reports can lead you to think like the analyst does — andyourself as much like hundreds of others do. Good performance doesn’t come by copying what as possible everyone else is doing. Don’ts • Message boards often foster a group mentality that a position should behave a certain way. You don’t want to gather knowledge from just anyone on the Internet. Rather, stick to trusted sources and form your own opinion on Don’t frequent matters message boards
  9. 9. Thank You! • READ MORETwitter Website Facebook
  10. 10. • Registered office: Kotak Securities Limited, 1st Floor, Bakhtawar, 229, Nariman Point, Mumbai - 400021. SEBI Registration No: NSE INB/INF/INE 230808130, BSE INB 010808153/INF 011133230/INE 011207251, OTC INB 200808136, MCXSX INE 260808130.• Disclaimer: Investments in securities are subject to market risks, please read the SEBI prescribed Combined RDD prior to investing.• * Awarded Best Brokerage Firm in India by AsiaMoney in 2006, 2007, 2008 and 2009