We at Ronin use swing trading strategies when both the fundamentals and the technical’s of a stock are showing opportunity. We look at longterm price trends, the patterns of those trends and the reasons behind those trends.
We swing trade to take advantage of the longer term trends that happen every few days, weeks or even months. The key to swing trading is to identify trends and get aboard when the point is at its lowest or on the way back up.
Swing trading is high risk; however, it also has a high payout. We have to have very tight boundaries and rules when we swing trade. Swing trading requires far fewer trades than day trading, with the expectation that any given swing trade will generate a larger profit than one would see in a successful day trade.
Some key pointers in our swing trading strategies are
- Stochastics showing overall market conditions
- Never trying to catch a falling knife.
- Patience. Waiting for real levels.
- Volume
- Vix Index
- Risk Management
