Ultimate swing trading system

Usually the case is that the more you work the more you make. I invite you to read through this simple guide on a swing effective technique on how to practice swing trading on your own. This guide rather short and written in a very easy-to-read format and ultimate meant for people with low to medium level of experience in the markets. Swing trading attempts to capture gains in a stock or any financial instrument within an overnight hold to several weeks.

These traders may utilize fundamental or intrinsic value of stocks in addition to analysing the price trends and patterns. In my own words: Swing trading is looking for certain price patterns that are predictable and trying to profit from them. You analyse the charts when you have time, put in orders, set automatic stop-loss and profit orders and move on to your other activities.

Finding Diamonds — Profitable Patterns to Search For. With system patterns you are able to forecast what they are likely to do in the future and profit from it more times than not. Triangle shape is in my experience one of the best working patterns in terms trading chances of success. You may find it in many forms, either ascending like the one on the picture, descending or even asymmetrical.

To lean more about triangle patterns, I would recommend to check out the triangle pattern section on Finvids website. Double top is another great pattern that is well known among traders and yet works with a rather high success ratio.

The same pattern works vice versa, if you notice one upside down, you can utilise it for going long in a stock. This is one of my favourite patterns, despite it having less chance of success as the ones named above.

I like the pattern, because it can be found very often in various instruments. Trading pattern can be a great moneymaker if utilised correctly. There are two main ways to trade this pattern, one is within the system and the other is to trade breakouts. Both are explained on the below video. Also again I advise to read Finvids channels section again if you want to learn a bit more about the specifics of the pattern. Let me tell you how it works:.

I use two main filters:. Having checked through a bunch of strong ascending triangles, I found one that seems like a potential play — Legg Mason LM. System instead of having to go through hundreds of different patterns, with forex you only have a few dozen instruments to go through.

If your FX broker offers various other instruments like commodities, you swing want to check these out for patterns as well. As there are less instruments to check in case of forex, there are also less opportunities to be found.

This is why I recommend to learn a few additional patterns for forex traders in order to broaden your trading opportunities. The three patterns shown above are my most favourite ones, but you are by no means limited to those three. One good place to learn about more technical trading patterns is the Finvids website that I previously referred to.

From there choose Chart Patterns and you will have a myriad of patterns to choose from. Now as you know the 5 most profitable chart patterns, you can basically go and try to start making some money. Swing as you probably guessed, it is not that easy. When you start looking for and recognizing the patterns, you will quickly realize that often times the charts are rather messy. Perfect set-ups are hard to find and hence it is difficult to decide which patterns you should participate in and when not to.

To combat this common problem I suggest to use a very easy, yet effective grading system. How it works is that when you recognize a pattern, you rate it in a range of based on how pure the pattern is. And every time you find and grade it, you take a screenshot of the pattern and save it to a folder or an Excel file I use Excel myself. It is a really important step and I highly recommend doing this. As you get more experience, your grading ability improves and you become better at this.

After you have decided on the grade, I suggest only taking on trades on ultimate that are rated at swing 6 or above. This is because the messy patterns tend to go all over the place and often stop you out before reaching your profit target. Bankroll management and growing your trading account exponentially. This is what is possible when you steadily grow your account. Over time, the gains add up and you are able to achieve millionaire status. Want your account balance to look something like this?

Of course you do. As trading can see from the above chart that trading consistent growth can become exponential, meaning that one is able to turn little money into a fortune in a few years or even ultimate. In order to achieve consistent exponential growth, you need to set a certain risk level for each trade. This is a percentage amount that system the maximum you are willing to risk per each trade. This also depends on ultimate account size.

This is a lot, but if you are trying to grow a smaller account, there is inherently more risk involved. Another important aspect is that the system system helps you protect your money.

The table is just for general guidelines, ultimate has been made to reflect risk level that is needed to realistically grow your account. Also bear in mind that if you are starting system with a smaller amount, you will need to risk a very big portion of your balance to make money. This percentage stop-loss system is vital as it keeps your account from drastically decreasing so it protects the downside risk.

There are many examples of successful traders with similar account growth graphs as I showed above I mean the first graph: They all have one thing in common — making consistent gains while managing their risk, with a similar system as described above.

Vice versa to losing and the percentage risk amount protecting your account swing the amount you are risking decreases — the same system helps you win more when your account grows. Profitability equals the percentage of trades that are profitable. Risk reward ratio is the amount your risking to the amount you are trying to gain.

For beginners, it is usually advised to use a risk reward ratio. I personally have different ratios for different chart patterns, these have all been described in the strategy articles of this site. This in turn leads system overall profitability and riches. This depends on their strategy, but you get the point. The key is to find a strategy and be a good enough of a trader to implement it in a way to achieve those numbers.

I will discuss this in detail in another article. Proper risk control is the key to win in the trading profession. If you should have any questions about this topic, please feel free to post a comment or contact me via e-mail traderpaulkoger gmail. The main idea behind grading is to analyse which patterns work the best and where do the majority of your profits and losses come from. So if you have an Excel chart of graded patterns and the results from these swing — did you eventually win or lose, you are able to analyse which patterns and grades work best and from which are you losing money from.

In order to have a realistic base to make statistics on, you should collect at least swing examples of each trading and grade. Ultimate should start analysing from the get go, but make conclusions only when you have enough examples to form an objective view. Another part of analysis is getting to know your profitability per chart pattern.

For this you need to keep track of all your results. This again requires a bit of extra work, but laziness to analyse their results is one of the main trading why people fail at trading. Before entering into each trade, I make a screenshot from the chart pattern and the profit and trading targets. After the trade is completed, I look at the closed positions to see how it went and write the results down to my Excel file.

With this simple technique System am able to find out which patterns work the best and from the patterns, which grades are the minimum to be profitable on averag e.

If you know this information, you are already better than most traders, as the majority does not track their performance and thus are at a disadvantage compared to you. This statistics is super-duper important, as from that you know which patterns are money makers on average and which are not and to only concentrate on the ones that make you profits.

TP means what is the average expected profit that you will probably make per trade. From the chart below, you can see total profitability as trading earlier. The higher the better. In the beginning I advise to start off with risk reward and after gathering some data, adjust from there. This guide is meant for people with different levels of experience, which is why the account opening process is also included in this guide.

I use their mobile, desktop and sometimes web applications. I do recommend them for swing trading. Swing trading is a powerful way to practice trading part time a side from your daily responsibilities. Mastering the craft may allow you to earn ultimate little extra or your whole income from the markets. I do understand this might be complicated to some, which is why I am more than happy to explain this in detail if you drop me an e-mail at traderpaulkoger gmail.

Would you recommend swing trading to someone with a small amount of money to expand his portfolio? Although you always need to keep track of your costs. If you have a small account, the costs can make up a big percentage of your position, meaning that is much harder to make a profit in the long run.

Read this piece ultimate more in depth in… Reply Etoro Review — My Honest Opinion - FoxyTrader April 5, at 5: Focus on a bit longer time periods instead, such as swing trading. Home Trading Swing Trading Videos Resources About me. Log into your account. Home Trading Strategies The Ultimate Swing Trading Strategies Guide.

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