Make no mistake...Swing Trading is where its at...

Discussion in 'Professional Trading' started by cashmoney69, Apr 9, 2009.

  1. We go for the bigger fish...We trade the trends that stuff our pockets with multiple points. Not nickles and dimes. Money management is all the same, regardless of time frame, and very rarely have I got caught in a nasty gap.

    While day traders stress about getting stopped out for .10 cents, hunched over their key boards, watching every tick, we swing traders enjoy a much more relaxed form of trading, one with equal or possibly more upside.

    Some Swing Traders may trade during the day, or some may trade off end-of-day data. This reduces the need for expensive charting software, and allows the trader to take his time to find the best trades.

    Once in a trade, we set our stops, and can either enjoy a favorite hobby, or watch the market intraday for entertainment purposes, or even go back to sleep. Not so for the day trader, as he's still trying to figure out why the stock he bought that was up 2pts in the first hr is now down 4.75, and he has to claw his way to B.E.

    Trades can be managed easier too, as a few pennies difference wont determine a winning and losing trade. Stops can be adjusted at will, usually after hrs (for me anyway), and I appreciate being able to have 3 or more open positions, while this is usally too much for a day trader.

    I'm not bashing you day traders out there, but rather giving us swingers :cool: some attention.
  2. Mr J

    Mr J

    You're making a lot of assumptions, many of which may not be true for many day traders. In the end the best strategy is one that works and is comfortable to live with.

    The majority of day traders aren't looking to scalp a few ticks.

    If I get stopped out, I get stopped out. No stress there.

    If I was to trade for say 5 hours, I guess I might spend 10-30 minutes actually looking at the screen. I can't go out for a round of golf, but I'm not stuck looking at a screen all day either :).

    Charting software is hardly expensive, especially if you only need something simple. Yes, trading can be simple.

    I'd be stopped out well before then and go back to watching a dvd.

    The action scales over time though. If you're waiting for confirmation for example, it's far larger for a swing trader than for a day trader, since the swing trader deals with much larger fluctuations. A swing trader doesn't take day trader prices, because they're dealing with a different timescale, at least that's how I view it.

    That said, I would prefer to be able to go out for that round of golf rather than watching dvds, xbox or listening to music :p .
  3. That pretty much sums up the OP's post.
  4. The OP is right.

    At one point (10-20 years in the future) the extra commissions with greatly compound against you (big time!)

    However, I would advise against trading individual stocks due to their gaps. They make using stops much trickier. Also, you need strong trends in order to swing trade. Individual stocks are too volatile to have a defined direction.

    Stick with SPX futures for swing trading, since their long open hours make MM much easier.
  5. Dustin


    Not trying to be cruel here, but you've been here 4 years and you are acting like some kind of swing trading authority with a $6k account. Hardly a successful venture.

    Based on your results swing trading is definitely not where it's at.
  6. As long as you aren't saying daytrading is NOT where it's at, it's all good. There are plenty of ways to make "cash money" trading different time frames. All that matters is that you have a method that works above commissions.
  7. Not exactly.

    If you do not have decent profit margins...
    And I would throw out 40% as a minimum for stocks...
    Then your business will not grow...
    And you will become a "subsistence gambler"...
    Spinning your wheels year after year...
    And unable to absorb structural changes that go against you.
  8. True that.

    cashmoney - you haven't been very successful at day-trading, and you probably aren't a consistent swing trader. Truth and accepting reality are virtues.
  9. timcar


    Outstanding opening post Mr.Cashmoney 69.

    See that you are moving from day-to-swing trading. Hope you knock them dead.

    What Dustin does not understand is SET-UP !!!!!!!!!!!

    Cash is trading a retail account while you and others trade PROP. Big difference.

    At Prop the daytrader has two huge advantages over retail:

    1. Great trading platform which can get trader into and out of positions quickly.
    2. Almost unlimited leverage to trade. Prop trader can (go long, short, hedge) trade many different ways with that unlimited capital.
  10. Jander


    This is a joke right? No way this is a serious post
    #10     Apr 9, 2009