Prof. Tyler yamazaki

Swing Trading
Another strategy that you can consider is Swing Trading. This type of
trading is good if you are considering a Stock that has the potential to move
up and down in a short time period. With this strategy, you are not going to
be that interested in the values of the Stock, but rather the trends and
patterns of their prices.

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In a perfect market scenario, Stocks are trading below or above a baseline
value, which is also what we called ‘a moving average’. When you are
experimenting around with the charts, you will be able to see a set of
moving averages that will fit to the actions of the price, and this can help
you out with your trading decisions. Someone who has been in the Stock
market for some time would know that they should buy near the bottom of
the moving average, and then they would sell before it reaches the target
moving average.
There are quite a few pros that can come with this trading strategy which
include:
This is a good strategy for beginners who are trying to get into
the market and still makes some profits, mainly because it is
relatively easy to execute.
You can use the basics of this kind of trading strategy in any
market that you would like. Big board Stocks, Futures, XCM,
and Forex also use swing trading.
However, there are also a few things that you need to watch out for. Swing
trading is not an option that everyone is going to be fond of. Some of the
cons of choosing swing trading as your strategy include:
It is not easy to find a perfect market where a particular Stock is
going to end up trading between the resistance and the support
levels. This can get even harder to predict when there is a strong
downtrend or a strong uptrend that are at work.
Penny Stocks can make it hard to time your buys the right way,
especially when dealing with dilution on the Stock that you
purchased.