1. What is swing trading ?
Swing trading is a style of trading that attempts to capture short- to medium-term gains in a stock (or any financial instrument) over a period of a few days to several weeks. Swing traders primarily use technical analysis to look for trading opportunities. These traders may utilize fundamental analysis in addition to analyzing price trends and patterns.
Swing trading involves taking trades that last a couple of days up to several months in order to profit from an anticipated price move.
Swing trading exposes a trader to overnight and weekend risk, where the price could gap and open the following session at a substantially different price.
Swing traders can take profits utilizing an established risk/reward ratio based on a stop loss and profit target, or they can take profits or losses based on a technical indicator or price action movements.
2. When should I buy a stock given in the day's list ?
I usually pick stocks which have given a breakout in terms of price and volume . The buyers know that lot of others will also start buying the stock . Usually the stock will go down a bit and slowly start moving up . Ideal time would be after 30 minutes of market opening . The price would settle down and it can be purchased . Usually we should buy at a lower price compared to previous days closing .
3. What is the strategy for exiting at Stop loss or Target ?
Usually in a matter of few days or a months time the target will be achived in swing trades . Best way to trade is after buying a stock us the Good Till Traded (GTT) orders . In GTT order you will give a SL and also a target .Usually in GTT one order cancels the other order . If SL is hit Target order is cancelled and vice versa . The advantage of GTT is that once the orders are placed till they get executed your trading system will automatically place the order on the exchange automatically .So you need not worry about placing the orders everyday
4. When to exit a stock on nearing SL or Target ?
Since our calls are not for intraday , there will be slight ups and downs in the market . The best way is your SL should be less that 1 or 2 rupees below the SL given in the call and your target should be minus 1 or 2 rs below the target.
5. What strategy to be used for Target1 and Target2 given in the calls ?
Usually based on the charts there are two levels which the stock would test as it moves up . On the first target lot of selling will come as earlier many buyers were trapped and are holding the stock and want to exit cost to cost . so usually resistance comes on first target and the stock comes down . If the news is good it will cross that resistance and move to the next resistance .It may pause for some time after testing the first resistance or target1 . If you are a quick trader , you can exit at Target1 wait for some time and as it comes down , buy it again for the second target .
6. How do I manage my finances with swing trades as many calls will be there ?
Since in swing trade it takes anywhere between 1 day to 1 month , you need to manage your finances properly and invest in maximum calls . Best strategy is use Maximum of 10% of your capital on one call . This will help you in investing in other calls also . Exit the calls as per your risk appetite and move on to the next trade
7. Do you provide any updates during market hours ?
Normally no as the SL and targets are clearly defined . If there is any specific event or variation in the target /SL , I will update the same here .
8. What is the performance of you in trading . Can we see the details of earlier calls ?
Yes you can . I update the google sheet regularly and once a month I release it for everyone's view . Kindly check the following google sheet for earlier calls till Aug 2021 .