How To Swing Trade

Archive for the ‘swing trading stocks’ Category

I am new to the stock market and going to do some swing trading. The idea is to buy at the bottom and sell at the top. But this makes me wonder: why would anyone buy from you when it is at the top of a peak and sell to you when it is at the bottom. Will my orders be successful or not?

Because a lot of new investors buy and sell based on emotion, not reason. They think what has happened in the recent past will continue. They see a stock price rise, and without looking at the fundamentals, financial facts (very high price to earnings, sales, book, etc ratios), their emotions say "I missed some of this great rise, and don’t want to miss the rest, I better buy now.
Same with the bottom. This thing has been falling for 6 months. I should have sold at least 3 or 4 months ago when the price was higher. I don’t want to get wiped out. I better sell now.

Just curious if anyone know what a fair rate would be?

Thanks in advance

That is an extremely small account to pay someone else to manage. (Small is $100,000 to $500,000). You are not likely to get anyone good or cheap.

It is difficult to defend accounts on a cost basis if they aren’t generating at least $1200 per year in income unless you have thousands of them…so my educated guess is at least 5% per year.

The industry "standard" for basic management is 2% per year for accounts under $1 million and 1% per year for accounts over $1 million. The highest fees on the biggest accounts can be as much as 2% per year plus 20% of profits for the top managers.

Of course if you give up the idea of active management and trading and go with index funds and passive management, you can lower your annual expenses to far less than 1% per year with little net change in average annual return.

If it were as simple as just looking at a chart, I’d have all the money in the world by now.

I don’t understand your question. Are you asking about a source of charts. stockcharts.com is free and customizable

Are you asking about best chart features. My favorite is MACD presented as the MACDhistogram

Good luck

Hi all,

I am new to stock investing in US. I have a scenario here. Suppose $100 are used to buy a stock at $10 per share. If I sell the stock next day morning at $12 per share ($120 in total) each and then buyback the same stock in the noon at $8 per share (I understand that free riding is not allowed and I need to come up with cash to buy back the same stock), what is my position at the end of the day?

I can think of two scenarios:

1) At the end of the second day, I made a profit of $40 and still have my stock at $10 each (total $100).
2) At the end of the second day, I made a profit of $20 and now have my stock at $8 per share (total $80).

Please tell which of the above two scenarios hold, or, the position is yet something different that I could not even think of.

Thank you folks.
It would be even more interesting, if the stock was sold at $9 per share next morning and bought back at $7 per share in the noon.

2 is correct

You buy at 10, sell it at 12, you made 2
You buy it back at 8, you own the stock at 8 and you still have the 2 profit you made yesterday

When you buy a stock, you must pay for it full before you sell it. If you sell it, your account is (should be) restricted for 90 days or until payment in full is made, and you can not use the proceeds of the sale to cover the purchase amount

i want to buy this stock. it had hit its support and formed a harami on a 1 year chart. what do u think. i am talking about swing trading.
http://finance.yahoo.com/q?s=cpn

If you have a system, use that to justify your trades. Don’t use the people on YA! to justify your trades. We’re a very unreliable source.