Swing Trading Basics

I must admit, when I started researching swing trading basics I got excited. Yeah, kinda sad, I know. In fact, I got excited because swing trading is going to give me the chance to step off the roller coaster and on to the swing.

I don’t know about you, but lately, I feel like I’ve been on a roller coaster that won’t stop rolling – a.k.a. life. The crappy part about all this is that I haven’t had the time to sit in front of my computer. As a result, I haven’t been able to catch those momentum stocks I so do love to day trade, sigh…..

Will this work for me? I don’t know yet. However, I’m going to give it a go. I love trading and I’m not going to let my life get in the way. Hence why I need swing trading basics.


Well you know my reason, it’s time or lack thereof for that matter. Hence I need swing trading basics. From what I gather, the four main appeals of swing trading are:

  1. Minimal Time Commitment. No need to “catch” the morning runners or afternoon power hour movers. Yep, good for me right now.
  2. Flexibility. You can have a set it and forget it approach. Sort of.
  3. Price. No need for fancy equipment
  4. Lower Stress. Maybe. Let’s chat below


To be honest, I really love the sound of the opening bell. In fact, it’s like we’re at the horse races. It’s fun to watch those stocks run outta the gate.

Not to mention the fact that, a lot of stocks are just like clockwork. They run up and boom, fall back down. So many great opportunities for day traders to hop in, or, wait for the crash to short.

swing trading basics

However, in order to “catch” these opening runners, your tush needs to be firmly planted in your computer chair. If your butt isn’t in the chair and your eyes glued to the charts, you’re not going to seize your opportunity.

Your eyes? Well consider them hawk eyes. No looking at the birds, your cat, your Instagram feed. YOU. MUST. FOCUS. And focus not only on one screen, but a few for that matter.

When stocks move on momentum, they move fast and you got to be ready. Swing trading basics give you more flexibility.


In reality, day trading sounds hard. However, it’s not if -and it’s a big if, IF YOU HAVE THE TIME.

In fact, the time for day trading (disagree with me if you want), is mainly between the opening bell from 9:30 am EST till about 11:30 am EST. Not to mention the late afternoon power hour from about 2:30 pm to 5:00 pm.

If, for whatever reason you can’t be in front of your computer at these times (think job with annoying helicopter boss), swing trading might be for you! As a result, swing trading basics are essential.


swing trading basics

The beauty of swing trading basics is that you can set it and forget it. Sort of. As you know, when day trading stocks, they move fast. As a result, you need to move fast too.

Who’s had the experience of quickly running to the washroom only to come back to a trade you missed. Or, better yet, a big loss because you didn’t set a stop loss. Tisk tisk, insert head shaking emoji.

What’s cool about swing trading, you hold trades over a few days and you simply exit when the time is right.

Since you’re holding over a few days, you don’t need to meticulously monitor the stocks every 1 to 5 minutes.

Literally, I just had the mental image of Julie Andrews from the Sound of Music running through the hills.

Yep, that’s what I imagine when I think about swing trading. In fact, swing trading basics are what I want and quite frankly what I need. I’m excited!


I’m pretty sure I talked about the difference in soft/hardware required for both day and swing trading in another blog post. To cut a long story short, to succeed at day trading you need to have the right computer and software. You can’t cheap out.

If you don’t spend some coin upfront to buy a laptop powerful enough to run the necessary charting software, it ain’t gonna work. It’s kinda like bringing a donkey to the horse race. He ain’t gonna work either.

As a result, with swing trading you don’t need a super fast computer or state of the art software. This is because you don’t need to quickly get in and out of trades. Pretty much any computer with internet access will do.


Some say day trading can be more stressful than swing trading. In my opinion, this depends.

It depends on you putting the time and energy in up front in your education to learn the right strategies. If you don’t, you’re gambling. And yes, it will be stressful as your account can quickly go from $3000 to $0 in a matter of seconds.

Let me know how it goes when you tell your wife you lost $3,000 on a hot tip from a trade room. I’ll give you a hot tip, she’s not going to be impressed, haha.


In fact, imagine a roller coaster. Now imagine you’re on said roller coaster. The roller coaster is climbing and climbing and climbing up for 15 seconds. Now imagine that roller coaster is the stock you just poured $3,000 into.

In fact, it’s been climbing for 15 seconds why wouldn’t you? Well, after climbing 15 seconds that coaster goes down just as fast as it came up. Suddenly you’re down $500, $1000, $1500.

In day trading it can happen that quick if you don’t know what you’re doing. As a result, it can be easily avoided if you had stop losses in place.

However, the reality is, the same thing can happen with swing trading as you stay in trades overnight. Stock prices can plummet after hours due to news. The thing is with the news, we can’t predict it.

What does this all mean to you? You need to be able to ride the roller coaster of ups and downs in price that can happen overnight.


If you think you don’t have the stomach for the quick, same day trades but you still want to capitalize on big swings in price, then swing trading might be the strategy for you.

Still struggling to see the difference between day trading and swing trading?  Just like day trading, you use technical indicators. But, they also use a bit of fundamental analysis as well.

Think of it like this, day traders are looking for the quick home run trade. One they can get in and out of quickly, for a win.

Swing traders are looking for upcoming catalysts that might cause a stock to move. Like a cat, they sit and wait, and wait and pounce when the time is right.


In order to find stocks to swing, you need to identify the catalysts that move stocks.

You’re in luck as there’s many to choose from. For example, earnings reports, regulatory events, or economic data points. A lot of stocks have predictable patterns every time come earning times.

Do your research, find the trend, and place the trade.

What’s more, these events are scheduled regularly. Think quarterly earnings, well, they come out quarterly. Savvy swing traders mark these dates in their calendars and play the moves that always come with these events accordingly.

Armed with these tools, you can plan your strategy of attack.


To cut a long story short, swing trading is great for those who want/need to keep their day time job and dabble in the market.

In fact, you can make profits without spending a lot of time in the markets. This means burnout and stress will be less if you are a swing trader.  So, it’s a win-win on all fronts.

And like everything in life, you shouldn’t go in blind. That’s why we can’t stress the importance of having the right education and tools at your fingertips to manage risk.

Be a savvy trader and invest in yourself. For a minimal investment of your time, we can get you started on the right path.

Click here to learn more!

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