Trading Strategies for Swing Trading:

(You should get greedy when other are fearful and fearful when others are greedy.)

1. Follow higher top / bottom and lower top / bottom.
2. Always enter in to trade when market goes below or higher of the previous day high / low.
3. Use stop loss few tick above or below the previous day high / low.
4. Next day of NR4(Narrow Range) or NR7 or ID(Inside Day) are better days to enter in a fresh trade after brake out.
5. Follow 3 day down/up 1 day up/down reversal in trend (Mark Rivalland theory). If you are a aggressive trader even than you should look for at least two bar pullback (correction) to enter trade (trend knockout pattern) above 1/16 point away from previous days high / low.
6. Play between support and resistance.
7. Follow the Trend
8. If the position is not comes profitable within two days and not stopped out, exit the trade MOC (Market on close).
9. When in doubt, Get out, if market is dull or quite after entering into a trade and no progress in our direction, don’t wait to hit your stop loss. Don’t trade in dull or quite market, when market is trading in very narrow range, avoid any fresh position.
10. Don’t carry loosing trade overnight if there is a substantial loss.
11. If market gives you windfall profit or the market has a range expansion move (big trading bar) or one way swing for more than three or more days, book profit fully or partially, or follow with trilling tight stop loss.
12. It is important to lock in the best trade. Be defensive and don’t give back profit when swing trading.
13. Most of the time small profit / loss might come and only two or three trade comes with big profit in a month.
14. Enter in one position and don’t add any more whether in profit or loss.
15. Move your stop when you are in profit.
16. Don’t let your decision influenced by any Guru or experts.
17. It is better to enter only one trade per day either fresh position or square off trade.
18. Trade without Emotions.
19. Don’t carry (Over night) any position when next day is an event day like Budget, Election result, Company results etc.
20. Do home work at night for the next day trading.
21. When trade is in good amount of profit and more profit is looking ahead, use weekly chart for determining the stop order.
22. As and when trade comes in profit on intraday basis, use stop loss near (above or below) the trade price and also consider brokerage charges while using stop loss.
23. When price more than 35% above the 200 DMA, get ready to trade short.
24. Success is based on Discipline, Hard Work and bit of Fair.
25. First see the weekly chart and than confirm in daily chart for the trend and than decide to go long / short or stand aside. Never go short when weekly chart tells us to buy.
26. Watch Macd Histogram and Macd Lines. In Macd Histogram higher high at latest higher top and higher bottom at the latest bottom is very good divergence.
27. Watch Moving averages.
28. Watch simple Moving averages of Volumes.
29. Do not rush for trade; let the trade come to you. You must observe everyday but not trade every day.
30. Always use trend line before any fresh trade and also check the patterns.
31. Move fast in / out (don’t hesitate)
32. Cut losses at the earliest possible.
33. Take profit on half of your position at a point between half and two third of the distance to the stop loss and move stop loss to breakeven.
34. A very short bar after following a massive move often indicates a reversal is coming.
35. Trade as per your chart not what your opinion is.
36. Use always Limit Order instead of Market Order.
37. In Option always buy In the Money Call / Put.
38. Let the bar turn in Blue from read to go long and vice-versa.
39. Always first look at Sensex or Nifty than sector index and than individual stock before enter in to any trade.
40. When Bollinger Band expand it is good time to write option and when contract it is better to buy them.
41. In a major trend, if market reverses for few days, the major trend should cover the losses in fewer days than the reverse days other wise market goes sideways for some time.
42. When there is confusion in short term time frame chart than look at the longer time frame chart.
43. It is perfectly ok to make mistake, but not ok to repeat them.
44. Always follow 2% and 6% stop loss rule. Maximum 2% stop loss on each single trade (if have a capital of Rs. 1,00,000/-, stop loss should not be grater than Rs. 2000.00 for given single trade) and total 6% stop loss on all open trade at any point of time.
45. Always use limit order to get in and market order for get out.
46. If market looks almost perfect but some thing missing, walk away.
47. Trade only when risk reward ratio is better.
48. The hardest part of trading is to stay cool without any emotion, greed, worry, and try to detach yourself from the money and think of this as a point of game.
49. If the indices and stock have the same pattern, stock run faster then indices. So find the stock which has similar chart as indices.
50. If you see three or four in a range that are the narrowest in the last 20 days, it shows the tightening of forces and there is going to break out either way.
51. Start writing notes every trade about reason of entry, exit, success, mistake etc. weekly or monthly basis review every trade and try to find out the mistakes you have done, reason of success.
52. Start trading with small position.
53. When an indices or stock trade in a very quite and in a very narrow range, add than in your watch list. Look at the weekly chart for the very narrow range, than look at daily chart for potential move.
54. Try to avoid placing a stop where everyone’s stop is going to be.
55. A narrow range out of the channel is a typical sign of a weakness.
56. Prices going below the moving average while trend is up, it does not confirm reversal of trend until moving averages crossover.
57. Never trade in a very volatile stock.
58. In options, selling call and puts are more profitable than buying.
59. A stock must hit new high if it is in uptrend. A two month calendar high (approximately 43 days) is good rule of thumb to use here and vise versa.
60. When a stock close within the top 25% of its range, it is a good sign to carry the trade for over night if you are long and vice versa..
61. Wide range bar – the stock range is greater than the last five days bar.
62. Go long when two or more days low are greater than the 20 DMA
63. use 10 simple DMA and 20 and 30 Exponential DMA.
64. use simple DMA for short term and Exponential DMA for longer term time frame.
65. The 2/20 DMA break out system looks to go long after two or more days lows are grater than 20 DMA
66. The market only trend 30% of time and ignore remaining 70% of time.
67. If stop loss (previous day low / high) is far away from the entry point, that use % wise stop loss to protect money.
68. When an outside day (make lower low and higher high than previous day) occurs and strong closing in a pullback, it suggest that the correction (pullback) is over.
69. The stock should have 3 - 4 wide trading (range) bars in last two months.
70. Ask a simple question—where’s the money? Take profits and focus on avoiding losses instead of trying to prove yourselves right.
71. Managing money in your trading account is essential for surviving the inevitable draw downs and prospering in the long run.
72. Before you put on a trade, be sure to know whether you’re investing, momentum trading, or countertrend trading.
73. Advanced traders may listen to tips but always drop them into their own trading systems to see whether that advice will hold up.
74. Use a computer or a ruler to draw a line, connecting nearby tops. If it slants up, it shows that bulls are becoming stronger, which is a good thing to know if you plan to trade from the long side. If that line slants down, it shows that bulls are becoming weaker, and buying is not such a good idea. The longer the trend line and the more points of contact it has with prices, the more valid it is. When they rise or fall at 60° or more, their breaks tend to lead to major reversals. It is better to draw trendlines as well as support and resistance lines across the edges of congestion areas instead of price extremes.
75. A one-day splash of uncommonly high volume often marks the beginning of a trend when it accompanies a breakout from a trading range. A similar splash tends to mark the end of a trend if it occurs during a well established move. Divergences between price and volume tend to occur at turning points
76. Moving average : Trend following indicator, Buying near the EMA helps maximize gains and minimize risks. Use a system of dual moving averages to identify trends and enter positions, Use the longer EMA to indicate the trend, and the shorter to find entry points