How to swing trade?

Swing trader utilizes technical and fundamental analysis, price trends, and patterns to find trading opportunities. Typically, swing trading involves holding a position, either long or short, for more than one trading session but usually no longer than several weeks. Swing trades can also occur during a trading session, though this is rare outcome that is brought about by extremely volatile conditions.

Swing trading strategies often look for arising opportunities on the daily charts, which we will be discussing later in this article, and may watch 1-hour or 15-minute charts to find a precise entry, stop loss, and take advantage of market swings.

Ultimately, each swing trader devises a plan and strategy that gives them an edge over other traders. However, even for the best swing strategy, it is impossible to work every time, so favourable risk/reward must produce an overall profit over a longer period of time.

Many swing traders assess trades on a risk/reward basis. For instance, profit factor of $3 is considered a favourable risk/reward, while risking $1 to only make $0.75 might be considered as not favourable risk/reward. To anticipate potential profits, traders analyze various charts and then predict when is the best time to enter and where to place a stop loss.

 *This answer is borrowed from Quant Savvy blog article about swing trading