Tackle Today: What is Swing Trading?
February 7, 2022
«It’s all about hold times.»
Traders,
On Monday, Feb 14, at 8:30 PM EST, we’ll be hosting our next YouTube training on Swing Trading Options.
As is custom, we will explore the topic over the next week of Tackle Today messages. We begin with an introduction to the term “swing trading.”
Speculators often categorize their trader type based on how long they maintain their positions. Here’s the usual definitions:
- Scalpers: hold for seconds to minutes.
- Day Traders: hold for minutes to hours.
- Swing Traders: hold for days to a couple of weeks.
- Position Traders: hold for weeks to months.
- Investors: hold for years.
Swing traders focus on and trade from the daily price chart. As the name suggests, their objective is to ride the swings that make up the trend. For example, they buy at support and sell at resistance. Or, they may buy on a breakout above resistance and ride prices to the next ceiling. Generally, swing traders don’t want to sit through a pullback, so they use relatively tight stops.
Position traders, on the other hand, do sit through pullbacks. They aim to ride the entire trend, which requires keeping a loose leash on positions.
We focus on finding the best swing trading patterns in our weekly Scouting Reports. Some traders buy shares of stock to capitalize. Others build directional options trades.
In next Monday’s webinar, we will share the best practices for using options with this trading style.
🛑 Upcoming Options Trading 101 Webinar: How to Swing Trade with Options with Coach Tyler Craig | February 14th, 2022 at 8:30 PM EST on YouTube
Join us to learn how to use two simple options trading strategies – the Long Call and Long Put – when Swing Trading. Traders use Technical Analysis in price charts to determine when to buy and sell. Many traders use the stock itself, but options are a great product to consider as well, as they bring leverage, complexity, more dynamic reward to risk ratios, and more.
In this webinar you will learn:
✅ What is Swing Trading
✅ How to use Technical Analysis to identify entry points
✅ What is a Long Call Option
✅ Long Call Risk Graph
✅ What is a Long Put Option
✅ Long Put Risk Graph
✅ How to Swing Trade with Options
Click on the button below to go to YouTube and set a reminder so you won’t miss it when Coach Tyler goes LIVE.
Video of the Day: How to Buy a Long Call With Stop Loss
In this video, Coach Noah discusses how to speculate with stock and options if you think the stock is going to rise. To further mitigate the risk, Coach Noah discusses ways to use a technique called the stop loss to help minimize the loss if the anticipated price movement does not occur as planned.
Chart of the Day: Facebook Fiasco
Facebook (now Meta) suffered the largest one-day loss by market cap in history. The wipeout saw Zuckerberg’s flagship lose over $230 billion. This is the latest in a long line of monster earnings gaps that show the danger of having too much exposure to one stock and holding into quarterly reports.
Today’s line up
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.
Weekend Reports
Watch the Stock, Options, Commodity, and Forex Reports to help you prepare for the week.
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