Passive Income Strategies: 2 Books in 1: – Swing Trading Strategies + Swing Trading Options. Start making money with this online business even if you are a newbie by Douglas Elder

Passive Income Strategies: 2 Books in 1: – Swing Trading Strategies + Swing Trading Options. Start making money with this online business even if you are a newbie by Douglas Elder

CHAPTER 1:
INTRODUCTION TO SWING TRADING
AND HOW IT WORKS
Swing trading represents a major short term Forex trading strategy. It works
by taking advantage of the price swings in the underlying security with the
aim of maximizing profits. Swing trading often lasts from a few days to two
weeks and capitalizes on a security’s price movement to generate income.
Traders use this strategy to purchase and sell stocks whose price indicator
points to an upward or downward trend in the future. They also use it to
establish the momentum of stocks so as to identify the best time to trade.
Because swing trading is a short-term strategy, investors must sell or buy
quickly so as to increase the chance of making a profit. This trading style
focuses on making smaller, but frequent incomes. It also enables buyers and
sellers to cut losses as much as possible. It assumes that market prices keep
changing with time and that traders can take advantage of these price
movements to make money. Traders using this form of trading must always
take note of the changes in the market direction and enter or exit the market
as the prices swing. The main aim of swing trading is to establish and
benefit from the potential of a price change. Most traders apply swing
trading on stocks that have high volatility and once they make some profit
from it, they exit the trade and move to the next opportunity. Swing trading
is one example of aggressive trading where short-term opportunities are
given priority over long-term ones. The trading style can be used on
numerous financial instruments including:
●      Stock
●      Bonds
●      Commodities
●      Foreign exchange
●      Stock Indices
●      Cryptocurrencies
For swing trading to be effective, you must hold your trading position for
some time. Since this trade capitalizes on price changes, the risk/ reward
ratio is quite interesting. The trader can make a profit from each market
swing and each trading period provides several opportunities to gain. Swing
traders invest in a risk/ reward basis. They carry out a technical analysis of
the underlying security or asset to assess how it will change in the future
and then apply the available data to predict entry and leave out from trade
without loss. This chapter takes an in-depth study of how swing trading
works, the difference between this trade and day trading as well as other
basic information you need to get started as a swing trader.
How Does Swing Trading Work?
Swing trading works using technical analysis. Because it deals with short-

term trades, technical factors are used to identify opportunities.
Fundamental analysis can also be incorporated to enhance returns although
this is optional. For instance, a swing trader will always want to understand
the fundamentals of stock that is in a bullish setup before trading. Technical
analysis helps you to locate the price swings and establish whether the price
will go higher or lower, depending on the trend of the charts. In doing this,
you are able to restrict your investment on assets and securities that have
momentum. You can also use technical analysis to take advantage of the
stock’s present trading pattern. Swing trading works by identifying the right
time to enter trading positions. The strategy comprises of two types of
swings.
●      Swing low – this is when the price of a security is low
●      Swing high – occurs when the price of a security is high
An investor monitors the movement of security prices between the swing
low and the swing high. When the prices start rising, the trader will seek to
buy from the lows and sell at the swing high. As the prices drop, the trader
will sell at the swing low. Traders may miss to identify the swing low and
swing high of trade but still make a profit since the strategy is based on how
the price moves, not necessarily the pick positive and negative prices. For
instance, long term investors may wait for six months to make a 25% profit
from trade while a swing trader can make 5% profit every week. Within the

Passive Income Strategies: 2 Books in 1: – Swing Trading Strategies + Swing Trading Options. Start making money with this online business even if you are a newbie by Douglas Elder