17.08.2023 09:30

Swing Trading Strategies and Tips for Beginners

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There are different techniques to employ concerning trading in the cryptocurrency market. As such the ability for you to know and understand the one that best suits your schedule or the pattern that favors your trading experience is important. Some methods require full attention and need you to be fully active.

Swing trading is, therefore, a strategy that focuses on making smaller profits in a short-term trend, although the profits made from this technique may be small. However, if done continuously and consistently it usually results in an excellent annual outcome. This swing trading is usually done in days or even weeks.

Furthermore, swing trading entails holding a position either long or short for more than one trading session, this session may require several weeks or months as the case may be. However, the trade may last more than a couple of months though the investor may still regard it as a swing trade.

Swing trading is interesting, but it shouldn’t cover the fact that it is still a business with lots of risks. To succeed in it, one must have to stick to a particular rule to keep you on track knowing that you have something you might lose.

In this article, some of the swing trading strategies and tips for beginners will be highlighted, so if you are curious to know about swing trading strategies in the cryptocurrency market, then this writeup is for you and also if you need guides on crypto stock, trading news, trading courses.

Trading Plan

As earlier stated, having a particular rule is necessary to help keep your trading plan in check, a trader should have a plan which must be carefully thought about and written down. These are some of the questions your trading plan should answer.

  •     What are your targets in the proposed trading?
  •     What stock will you trade?
  •     How much capital should you start with?
  •     Time consciousness.
  •     What tools will be beneficial to you,(fundamental, technical, or using both tools)?
  •     What are your entry signals?
  •     When do you exit a location for a profit?
  •     When do you exit a location for a loss?

These are some of the questions that your trading questionnaire should include because it keeps you in check and also helps you think about important issues you may tend to overlook when making decisions. Sticking to your plan increases your chances of success. Also the more errors you avoid the more your chances of making profits.

Put Your Emotions Under Subjection

This point is really important as we know the nature of man is very emotional, that being said you should try as much as possible to put your emotions in check while trading because trading decisions made under some sort of emotions can be disastrous.

Furthermore, emotions that can not be controlled can lead to losses in your trading experience, traders who have lost huge amounts probably started losing small amounts which resulted in millions and billions of which was caused by their inability to control their emotions.

When a loss occurs it is not because you made a profit or loss in your previous trade, rather it depends on your trading expertise and the market in which you are trading. A skilled trader should be able to control his/her emotions.


This is simply an aspect where the swing trader holds another group of investment positions, the trader should have several other positions, in at least 10 different sectors, you can also go into investing in other assets in your swing trading.

For instance, you can include innovative stocks, market equity, and also physical stocks like Gold. This can only be done when the security involved meets with your strategy/plan.

As much as it is good to diversify it is also wise not to do it to th e extreme. This diversification reduces risks and allows market volatility, such that profits made from other sources may fill up losses in the other which may balance the trend.

Catching the Wave

In this strategy, the investor learns to catch the wave in a trending market, and the major point here is to make an entry after a pullback has ended and when another trend is likely to commence. Though this trading pattern doesn’t work for all types of trends.

Some of the steps for catching the wave includes;

  •     Locate a trend that follows a particular moving average.
  •     When you observe that the market approaches the moving average, kindly wait for a rising price rejection.
  •     If there’s no observable rise simply go on to the next.
  •     Set up stop loss (average trend range) below the low and make profits before the swig goes up.

Final Thought

Trading in crypto stock requires skill and a proper strategy, as established above. The swing trade involves making little profits that will eventually result in greater profits if done consistently.

Swing trading is best suited for volatile market conditions, where there’s numerous trading opportunities. Of course, it requires an ample amount of time to monitor the market, but in the end it’s a worthwhile venture.


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