Swing Trading For a Consistent Return

Discussion in 'Journals' started by Illini Trader, Jun 3, 2021.

  1. This is a test on a small $3,500 account to Swing Trade Stocks. The objective is to be able to make a steady return by taking short and long stock positions without experiencing large drawdowns that can happen by buying an Index Fund. If successful then it could be ramped up to trade much larger sums because the trading pool will be large volume stocks.

    I will post a screen shot my TOS "Cash and Sweep Vehicle" that shows a time stamp for every trade and also my personal spreadsheet that records every trade with W/L percentages, profit ratios, etc.

    I floated this idea of making a 10+% a year on a large base in my previous thread "Managing a Large Account for Income" and the unanimous advice was that I was dreaming. That did not upset me because they are probably right but it does take the pressure off as I go in a big underdog that is expected to fail so I will have some fun giving it a go.

    Here are the basic rules

    1. Although this is a margin account I will not let the Cash Balance go negative
    2. I will select trades from a pre selected pool of 64 stocks.
    3. I will use a very simple system consisting of a naked chart with one study-tool-indicator on the chart.
    4. I will size positions at approximately $250 to $350 each so some positions will be one share.
    5. I started on Wed June 2nd and will compare results to the SPX and NDX June 1st close.
    6. This may be a very short-lived Journal but we shall see.
    Screenshot (24).png Screenshot (26).png
    johnarb likes this.
  2. Overnight


    You have instantly failed. Full stop. You talk about swing trading, yet you are buying and selling the same stock within 24 hours. That BARELY meets the definition of a "swing trade".

    A simple overnight hold is not a "swing trade" IMHO. You have to let the trade fester for a few days at LEAST.

    Stop touching the close button on your entries a few hours later! Let it truly be a swing trade! Let them WORK!
    TimtheEnchanter likes this.
  3. What was your criteria for the 64 instruments? Correlation analysis involved?

    Can you show a chart?

    Best of luck!

  4. I agree with your comment however I had a lot of positions and I want to correct what I consider a mistake quickly. I see where you are coming from because LULU recovered quite a bit after I closed.
  5. Overnight


    You are either swing trading the whole portfolio, or you are day-trading the portfolio. If you are doing both, it is not a swing portfolio. It is a hybrid.

    Call it for what it is.

    Last edited: Jun 3, 2021
  6. Here is a chart for EXPE that I shorted on Tues because of the upward failure and fall on Tues
    And a Long on GS as I liked the pinbar close on Tuesday. I am still holding them so maybe Overnight will give me a pass and let me call them a "Swing Trade" :)

    Screenshot (28).png Screenshot (30).png
  7. OK, I am fine with calling it a hybird, I just hold the trade until I don't want to hold it. The daytrade on my spreadsheet was an accident.
  8. Overnight


    My apologies to you. I think I lashed out a bit at you due to my swing positions, which I have been in for like 7 weeks and have not yet reached my modest targets.

    Thus, when I see people talking about 1-day "swings", I think, "The frak". It is selfish of me I guess. *shrugs*

    (And I have to realize, this is your journal thread, not a regular thread).
  9. 64 because that will fit on two of TOS 32 chart grids. Criteria is .... Well you get the flavor by the stocks I traded Tues and Wed.
  10. No offense was taken. I always enjoy your posts. I enjoyed the video but am scratching my head a little as to how it fits in to our discussion.
    #10     Jun 4, 2021