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Position-Swing Trading


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#1 mss

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Posted 09 June 2010 - 12:32 PM

:)
I have received several requests for trading ideas that involve a longer time frame than one day. I will try to give a simple system for position or swing trading that works for me and I have used it for years. I also have other systems but this one appears to have less risk (loss), and of course less profit but it does allow someone with limited funds to build a nice bank account over time.

All trading has the chance of loss as well as gain, so it is important to find a system you understand and adhere to it faithfully. "I think" and "I feel" only count when you have all the money you ever want and are willing to gamble on your gut.

The averages used on this system reduce "whip-saw" and allow a level of judgement to be used in staying with the trade or bailing out. My settings are time tested over 20 years for this type of trading but ARE NOT the only ones that can be useful. I have picked a Royalty Trust to show what is a good tool to make money over time. This trust has been around a long time and currently is paying 9%+ with a nice growth.

Use a two year chart to start with. Will tell you what was and now is.
All moving averages should be in a steady up or down trend.
MACD settings I use indicate change in price direction. Momentum.
Accumulation and distribution trend is worth watching.
Money flow is helpful, but can be misleading at times.
RSI is another trend and strength indicator.

By studying the chart and the positions of the various indicators this stock was an excellent buy in August/September of last year and is still a good buy now.

http://stockcharts.c...7915&r=4043.png

http://stockcharts.c...5760&r=2643.png

At the current time there are about 200 stocks, ETFS, and Trusts worth viewing.
It is not necessary to trade every day nor is it needed to have more than 5 things to trade at the time. You can make good money trading two things you know well. It is a must to know and understand what you are trading.
The best trades are the patterns you catch just as the trend changes to the up or down.
I spend five times the amount of my day looking for trades than I do trading.

Best to those who asked, and to some of you this was elementary. To others the chart settings should help.

Comments welcome,
mss


NOTE: I am NOT recommending either stock displayed in this post, they are for illustration only.

Edited by mss, 09 June 2010 - 12:38 PM.

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#2 ww4321

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Posted 09 June 2010 - 01:06 PM

What criteria for the 200 worth trading? thanks in advance

#3 jack

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Posted 10 June 2010 - 03:20 PM

Thanks for this MSS. I have a sense of why you're doing this and why now. For me, innate hesitancy to deploy medium term capital is an issue. I think your charts and thoughts are also helpful to folks like me.