Is it a Good Idea to Swing Trade Daily?

You must be a silent spectator of the daily trading and when you find a conducive moment you must apply for entry/exit positions. This should be your daily action plan and hence swing traders need to be attentive through the trading sessions.

You must be involved in the stock market trading during pre-market hours, market hours, and after the market hours.

Through the process, you are advised to analyze the market trends rather than diving in to participate in stock trading.

Best Time Frame for Swing Trading

You are advised to begin your day a few hours before the actual trading day sessions that begin at 09:30 am.

Ideally, swing traders should gather voluminous information on the stock news, and financial information from government agencies like RBI, SEBI, etc

In the pre-market watch,

You must catch the latest news, developments and a few important things you must review are the market sentiments that reflect the probable bullish/bearish markets.

Make a craftful analysis of the inflation, overseas trading, foreign exchange, and commodity markets.

Make a guess of the sectors that are most likely to gear up in the day trades, and the financial positions of the companies in news.

Swing traders generally utilize the information obtained from fundamental catalysts to make an entry, and manage or exit by seeking information after conducting technical analysis.

To make an entry you must seek information on the stock opportunities, such as info on the company’s initial public offerings, IPO, insider buying, buyouts, mergers, acquisitions, or some other events that can catalyze the company’s performance.

A sector plays a predominant role, say, for instance, an energy sector, and progressive information on the energy forefront can boost the sector’s related stocks.

Swing traders after the purchase of the catalyzed stocks can also exit from, by obtaining technical analysis through charts, and patterns, to identify the breakouts/ breakdowns, such as  Fibonacci levels, Gann levels, triangles, channels, Wolfe Waves, etc.

You must check for the possible entry/exit positions and also check for the stop-loss options on your stocks.

In case, you observe an overnight trading of your stocks then you must be prepared for the probable shifting of the stock positions if necessary.

Stock Market Hours:

You must begin with one-day timeframes, to 4-hour time frames to understand the trading trends.

You must combine the fundamentals, and technical indicators to identify the momentous price movements.

You are recommended to watch the market during the market hours including trading moves like uptrend, downtrend, and sideways.

In the market hours, the swing traders must take notice of level 11 quotes, that reflect the value of stocks bought and sold in the trades.

You may identify the trading levels that look bullish, but you are recommended to adjust profit-taking levels. Otherwise, you should adjust the stop-loss levels in the upward direction to lock in profits.

After Market Hours:

You must indulge in performance evaluation that keeps track of your stock trade, which enables you to bring about an overall improvement of the stock positions.

A trader must review the open position of the stocks, announcements, material events like acquisitions, mergers, etc., and after-trading hours earnings.

You are advised to evaluate and review the market trends of the day rather than involving market trades.