How to Become the Master of Swing Trading?

| Updated on July 7, 2023

Swing trading is a dangerous investing technique and should not be undertaken casually. However, by learning and applying these swing trading tips and tricks to your current market framework, you may obtain a greater grasp of what it takes to become a more effective swing trader.

Adjust Your Trade to Market Direction

Start with the market’s main and intermediate trends, which give the framework for short-term trading choices for every trader.

Even if your trade is profitable for a little period, if you simply consider the short term, the greater patterns are likely to reassert themselves. Your earning potential is at best minimal. You must discover longer-term tendencies to ensure that you move with the flow (not against it).

Protracted Strengths, Brief Weaknesses

Once you have determined the broad tendency, you should not battle the tape: Look for suitable long bets during times of bullishness and short trades during bearishness.

Commerce in Harmony

Technical indicators should be used to monitor trends across short as well as intermediate time frames. This kind of technical analysis will, however, always be incomplete or constrained because those doing it are unable to see the bigger picture.

Conversely, swing trading does not rely just on the major trend, since there will be times when the intermediate trend becomes bullish and stocks surge.

Even if you are a short-term trader, you must be aware of when the intermediate-term trend is shifting (and when a countertrend rally is taking hold).

Consider the Bigger Picture

Utilize both your telescope and microscope, since too short a “look-back time” might be deceiving (and costly).

A two-year weekly chart is useful for assessing the broader picture of a company. Examine the shares relative to a long-term moving average to ascertain the general trend.

Next, concentrate on the 6-month daily chart. Here, you will notice finer details that are obscured on the weekly chart. Shorter-term moving averages help determine the short-term trend of a stock.

Finally, zoom in on the hourly chart to determine the dominant pattern throughout the previous weeks. Moving averages are quite useful in this situation.

Swing Trades Perform Better Early On

It’s never too late to get on the elevator, but the sooner you detect a trend, the more lucrative (and less risky) your trade will be. The most critical step is to closely monitor the market’s overall averages. Overbought or oversold securities are often susceptible to reversal. Examining new highs, new lows, and the advance/decline line is very helpful when the market tests a big zone of support and resistance.

Apply the “Multiple Indicators” Rule while you’re at it

Typically, very lucrative trades occur when all relevant technical indicators predict that a stock’s price will climb or fall quickly.

There is no silver bullet for effective market trading, and there is no such thing as “free money.” Technical analysis can only raise the likelihood that a swing trading choice will be accurate. However, great trading chances have emerged. Initially, several indications convey the same information within a little amount of time (about 2-3 days).

Also Read: What are the Benefits of Cryptocurrency


These are crucial elements to bear in mind if you want to master swing trading and improve the portfolio of your Demat account.

Joseph Williams


Related Posts