Swing - Trading Strategy for US Equities
We apply the timeless and success-proven strategies of Mark Minervini - 3x US investment champion.
🍾🍾 We trade like the Champions!! 🍾🍾
What Is Swing - Trading?
Swing trading is a strategy that focuses on taking smaller gains in short term trends and cutting losses quicker. The gains mightsmall in the range of only 5-15%, but done consistently over time they can compound into excellent annual returns. Swing trading positions are usually held a few days to a couple of weeks, but can be held longer.
The swing trader's focus isn't on gains developing over weeks or months, like position trading. The average length of a trade is more like 5 to 10 days. In this way, you can make a lot of small wins, which will add up to big overall returns. If you are happy with a 20% gain over a month or more, 5% to 15% gains every week or two can add up to significant profits.
Rather than the normal 7% to 8% stop loss, take losses quicker at a maximum of 2% to 3%. This will keep you at a 2-to-1 profit-to-loss ratio, a sound portfolio management rule for success. It's a critical component of the whole system since an outsize loss can quickly wipe away a lot of progress made with smaller gains.