What are some tips for becoming a successful swing trader with limited funds in the stock market?
How to become a successful swing trader with a small capital base to start:
- Get a good education. I know everyone thinks they can watch a few free videos and then be successful but statistics prove otherwise.
- Be patient. You need to learn how to read stock charts as easily as you read a book or sheet music or whatever. Candlesticks are a language one reads.
- Indicators need to be the new Hybrid leading Indicators for swing trading because you need to identify Dark Pool Buy Zones and follow pro traders “nudges” before price starts moving up.
- Use a simulator that is not a game but a real simulator that works just like it would in the market. Test your skills. Hone your skills.
- The most common reason why new swing traders lose money is not understanding the price, volume and trend relationships on a short term basis and taking high risk without realizing that the risk is too high.
- Run Gain Potential gives you the basis to calculate Risk versus Profit Potential. Use it.
- There are new candlestick patterns that work ideally for swing trading. These are not in the Candlestick Books.
- You need to learn WHO is in control of price. There are now 12 different market participant groups and you want to trade with the professionals not against them.
- Do not trade penny stocks. YES they are cheap but they are cheap for a reason and are very volatile.
- Do not chase a stock run. Once price has moved up, the entry is over. Learn to trade pro trader nudges and signals that have no short term resistance in the way. Trade with pros rather than against them.