Swing Trading Overview | Swing Trading (Days to Weeks)
Alright Hey, it's great to have those of you that are live with us today for this swing trading Webcast. My name is John McNichol and I'm joined by my good friend on the chat, Mr James Boyd. Do appreciate you. Those who have joined us live as well as those of you that may be listening to the archive session believe this is a promoted Webcast as well. So there may be a lot of new clients with us today. We'd like to give you a hearty welcome. You can follow both James and myself on Twitter . It's our first initial last name. You can see mine at the
bottom of the screen, and James can be followed at J B O i d underscored NVDA. It's a great way to learn more about your instructors along with the markets as well. Let's go ahead and take care of disclosures, folks. We'll get right into it. Keep mind contents intended for educational information purposes only option is not suitable for all investors. Spread's
straddles otherwise tele leg options strategies often involve greater more complex risk than single egg option traits. Transaction costs are important factors should be considered when evaluating any trade. You're encouraged practice what you learned here today with tools such to paperMoney software, keeping in mind it is for educational purposes and successful virtual trading during one time period does not guarantee success of actual funds learned later. Time period. It's market conditions change continuously. Keep in mind with options. We do place
some practice trades on options , Long call or put position places the entire option at risk . Likewise short options can be assigned at any time, regardless of the and the money amount. As I mentioned about transaction costs. Also while this Webcast may discuss technical analysis, other approaches, including fundamental analysis may serve very different views. And the stop loss order will not guarantee an execution at or near an activation price. Once
activated, they compete with other income and market orders. There's my bio for those who that may be unfamiliar. I along with James, who I've known for quite a few years and been involved in education through various organizations. Going
back quite a few years. You can see some of my interest on what I teach here. And what I like to do when I get a chance to do it.
Ah little hiking, camping and kayaking. Living out in Utah for about the last 25 years is a bit conducive to that. And uh so certainly enjoy it. Although
it's a little hard day today. But I digress. Hopefully you had a nice. Ah nice. Uh Independence
Day weekend, there were all back to work. Once again. Let's go ahead and take her of our Agenda and what we intend to cover here today. So seen as it that we do have a promote Webcast and to appreciate my long term viewers to continue on and your patients there. We're going to explore some of the fundamental elements of swing trading. And we're
going to apply that by utilizing to think or swim platform to identify some potential swing setups will demonstrate on placing a stock trade and or although I think we'll get a couple examples here. Ah of an option trade. We've done a few spread trades in this class as examples, and then we'll round things out by reviewing some of those current market conditions and a lot of times we look at those current marking editions upfront, but I want to go ahead and focus on our main topic on swing trading and probably explain as we get to the end. You know why we do look at those current market conditions because there's a lot of tie in To the setups and the topic at hand. So let's go ahead and do that. I'm gonna bring up the
thinker swim platform. Feel free to utilize the chat. If you do have it have any questions? I'll do my best to address them. However James will be helping out And will do his best to answer your questions as well. I want to go ahead and bring up A couple of examples for potential swing trades and one we're looking at a bit earlier today is Federal Express. This could be Italian to the question that we had asked ourselves, you know, is this more of a turnaround Tuesday. As we look
at Federal Express. Some of the concepts that we need to consider when we do swing Trading is some of the principles of technical analysis . One being the trend. What is our prevailing trend? Is that trend going up? Is it going down or is it going more sideways? If we're considering doing a bullish trade over the shorter term? Ah ideally, we would like to have a trend that supports that price action. So therefore , if we're going to look to trade, uh and upward price movement, it would make sense to have a trend that's at least sideways, if not a little more towards the upside more of an upward trend. That ties into the
next principle of technical analysis, which is support and resistance. Swing. Trading typically focuses on those areas of support and resistance. In the case of a bullish trade being long or trading a bounce from a swing low and likewise.
Going up to a swing high, representing potentially resistance, so swing trading may have a focus on support and resistance areas. So think about that, as we look at our example here with Federal Express. The third principle is more on the lines of momentum is and trend can certainly have a place and that's stronger trends would demonstrate stronger momentum. Traders may utilize different indicators to focus on that. So
as we do, apply these principles or something such as Federal Express. You know, we may see some differences compared to anyone who may have been looking at the market lately. By comparison, for instance, the SPX-- for the S and P 500. It looks like I have a little trouble typing in a symbol here, man to digress here for a moment. Refresh this. It looks
like my keyboards locked. Give me just a moment here. See if we can Remove this. Okay We're
having a little bit of an issue here. But bear with me, folks. I should have this hopefully taken care of I'm not sure why I cannot type in a symbol here. Go ahead and see if I can reset this. Alright let's try one other thing here. Alright Okay. We'll see if we let me just go back to recent stocks and we won't bring up The S and P. For
the moment. Let's keep ourself centered on Federal Express. Ah but ah, you'll have to trust me that the S and P has traded lower and has made some Potentially higher low but has primarily been more down trending as we go ahead and we take a look at Federal Express. And pull this out a little bit. Here. We see a stock that has been Down training. But, you
know, has there been signs over a reversal, so if we look at the concept of trend we can see here that price action. Previously had been making some lower highs. As well as some lower lows. Those there was a bit of a transition here as that price action. Transitioning from lower
lows to higher lows. And then more recently, making some higher highs. Now a good tool. And those of you that joined me in my webcast before. No, this can be a very helpful tool on recognizing Ah, different patterns as far as highs and lows, we can actually turn on a tool. To represent those highs and lows. It's called Williams
Fractal if I go ahead to the upper right hand corner of the platform. Where it says Platt patterns on the charts. I'm gonna click on patterns. Select
show patterns. And you'll see mine already appear here. But if you're doing this for the first time, you'd want to go to select patterns. Once there It's part of the candlestick Formations and candlesticks are a very common application for identifying swing highs, swing lows as well as trying to visualize potential entry and exit points. Utilizing candles. So I'm going to start typing in William for Williams Fractal. There's the indicator knows there's a little question Mark there you click on the question Mark. This will give you a
background on what that indicator is doing. Now. Keep in mind. This is not part of the chart studies. It's part of the pattern tools. Get a lot of questions. As far as hey, I
can't find the study. That's because it's part of the patterns, tools versus the studies, and again. It's attempting to identify Ah, these reversal candlesticks, both from a bullish as well as embarrassed perspective. That we apply in
the swing trading class as well as a lot of our technical Web cat casts, including the one stop by James Boyd, for instance, as a trend trading class that focuses on some of these same concepts, just a little more of a longer duration. Continue scrolling down, you'll see a link for more details that will take you to our learning center. You want to take a deeper dive, so we already had this applied here. And you can. If you don't, you
can double click to apply it. You can also highlight and extra remove any indicator or in this case, the patterns And we'll click apply. I'll notice as we applied that you can see these little fractal points kind of visualize and what I pointed out to you the transition of these lower lows. To higher lows. Now
notice that there's no fractal point on this current low, but more than likely one would see one tomorrow It'll lag a day. Um However, we're teaching you here also how to recognize some of these potential lows knows we've also seen some Recent higher highs. And at least an initial attempt for Federal Express to break that down trend is what we call a reversal pattern, something that's discussed more extensively in technically speaking breakdown, reversal patterns. I teach that tomorrow. Ah, at noon Eastern time. Now as we look a little bit closer. Now
we have the potential trend as far as higher highs and higher lows, Traders may use different moving averages. Ah like a 30 period or a 50 period. I happen to be using a 55 period exponential. To kind of represent more of a broader trend. Notice that we found a bounce off of this. That higher
low is held above that average average is also rising, signifying a potential trend. Zoom in even closer. We also see the next aspect. Of. On a swing trade and the principles that support and resistance so just like a moving average can act as support. Price action as well. Can act as support. As we see
those rising lows. And then when we consider an area of resistance, we may be looking at previous highs. So for instance , looking at this previous high here on Federal Express. Which is at around that 2 40 looks like just shot about 2.40.9. And so notice. As we look at this
price action, there's more of a zigzag right prices going up, pulling back going up pulling back those are those correspondent swings. And when it comes to an uptrend, the idea is to trade the upward swings. Now that's what I did. I just took a diagonal line and drew a line. From. A low to a high swing, low swing high. And this is what shorter term traders may be looking to try and capture.
Notice that you know another swing, although this one dipped down a bit harder here. Swing, low swing high. And little choppy through here, but swing low. Swing high, and it was that in each of these swings Those swings made a higher high. Those would be examples of successful swings. Right now we're at a higher low and with some traders may be anticipating is a another positive swing. And I want some
traders may do is measure a previous swing notice. We have different swings of different velocities here. Bye. Take something similar on average here, such as this line. Right
click. And do a duplicate line. And then go from that current low. And project that out notice. There's a bit of
confluence with that previous high previous highs can be targets for swings. If that high is taken out, that would be considered to be a successful swing. Some swings may go significantly higher than that previous high, although with Federal Express things were a little choppy here. Now as we
zoom in, you know what constitutes a bounce. Four and a potential entry for a swing trade. Well this is a common technique that we teach her at tdameritrade educations. What's called a CAHOLD-. It's recognizing. A low, preferably a higher low in this case of a swing trade. Which is a noted
from Friday, looking at the high of that low day. Which is signified here. And then as a trigger, looking for price to trade or close. Above the high of the low day hence our acronym for a CAHOLD-. And notice for today. As far as you know more of a turnaround for some stocks , some traders if they entered in earlier in the day, may be able to capture on that momentum. And there's that
longer range day, signifying some of that momentum. However we know there's no guarantees of that. We've seen price action trade higher and then fade in the afternoon. That's actually
been common in this market, where we still have to focus that as a whole. We are in a bear market. And in a lot of cases, we've seen rallies have a tendency of fading. That doesn't mean though, that from a swing perspective, traders may be able to capture that shorter term move. Weather in an up trending stock as we're seeing with Federal Express, which is demonstrated some more relative strength or in other stocks, at least from a standpoint of a counter trend to trade up in that range. So we've addressed
some of those principles here as far as with technical analysis on Federal Express as far as with its trend. Support. Resistance. And seeing some of that momentum. So let's say we're doing an example of a practice trade here on this. Now
try to express is a more expensive stock. You know, trading at $229. You know some traders that may have smaller accounts would require. If they're allocated a certain percentage. It would be a
relatively small lot. As far as which shares so let's say as an example, you know if I did 50 shares of that stock that would be allocating, I think somewhere along the lines of around what 10 14,000 well, let's let's see here. Right click. I'm gonna right click on the chart. And what I'm gonna do is I'm going to do a buy custom. With an O. C o bracket. This common technique
that some traders may utilize for swing trading as well as other trades where they may plan an entry as well as having exit attached to that. I'm gonna unlock the Ah, the lock here, so we have the current price. And I'm gonna change the number of shares to 50, for example, actually kind of Kicked off of that. 50 shares. I went to confirm and send. This will give me an idea. That was a little off on that math. I thought it
was closer to 10,000. As far as tying up the amount of equity that's about 11,000. Almost $12,000. Now we also want to make sure as far as on the sell orders that those sell orders match there is a little chain link up at the top here. If we click on that, that should go ahead and match up those orders.
Now let's go ahead and explore a little bit more. Ah we do have an example of a bounce. Now there's still about about 40 minutes left in the market. Prices can fade relatively quickly. But we're going off the assumption that the price will hold above the high of the low day. So we're going to put in an order close to the current market. We can utilize the limit
order to do that. We also are going to plan a potential exit. If we're going to target this previous high that would be at about 2 49. So that's one
potential exit. Another potential exit is to the downside if we're looking to potentially limit the downside is possibly considering a stop loss, Keep in mind to stop loss will not guaranteed to fill. Ah! At That trigger price it will compete with other income in market orders, and let's go ahead and visualize that. By taking a look at that previous low and we'll set a stop a percentage below that low. Let's say For this example we'll set about 1% below that low if the swing fails. Then the idea is
failing fast and limited any potential loss. So with the low of being to 17 71, I put my cursor on the bar. You can see the price action right up here at the top showing you the open, high, low close. But my cursor
on that day 12 17 71. I'm gonna go ahead over to the calculator here on the think or swim platform. There's actually a gadget that's built in on the left sidebar here. I'm gonna
switch that gadget to a calculator. And we said that was to 17. To 17.71. Times and we'll do 0.99. That's 1% below that level, so that would be to 15 53. Go and mark that on the chart. Somebody who's a
horizontal line. To just plot where that potential price level is. Sometimes you can kind of get it right on the mark there. Lot of times what you may need to do is when you drop the line. You can Right click on that line. Edit properties and type
in that price level. In this case we said to 15 53. All right. So we got that there,
we'll click OK? And a lot of times to help. Visualize that being a potential stop on the chart. You know it can also right click edit. Make that red
Maybe a little dash line there. Kind of differentiate between Ah , you know, Supporter resistance area And so there's where that potential stop. So planning an exit to the downside to 15 53. There's the upside target 2.40.8 99. Ah we'll go back to the order, which is actually hidden on this little sub tab here. You
can click on that to basically minimize or bring up that order so we can go back to it. That helped us spend a little time on the chart. And since I already had that price Information on here. There's 2.40.8 99. That's
the example of a target, so I'm going to plug in to 48. 0.99 We'll hit Enter. Now the time and force for this OC Owen cancels other We're going to make that GTC for good. Til canceled will change that to both of those orders. We want both those orders to continue to work once the buy orders filled , it will create a bracket order where we'll have a limit order, which is a desire price at that price, or better to sell. And we
have a stop, which would be at a worse price. If the price goes down now, whatever order hits first, if it hits the limit order, it'll cancel. Ah, the stop order. If the price goes down and fills the stop, it'll go ahead and canceled. That limit order, so it's a great way of being able to plan a trade trade plan. This is only one of many different techniques traders may use to get in and out of the trade in this class.
We're going to focus on some basic ones. But if you join me each and every week and my swing trading class, we actually go over different order types. We also look at other things, such as options as well as a spread traits to which can be as an example. Less capital. But the limitation is one doesn't have stock ownership. Which may or may be important to you. So with that We have our limit order ino ahead and plug in the Potential stop to 15 point. 53. Now keep
it in mind again. This is a stop order. The to 15 53 is a trigger price. If that trigger prices hit, then it'll sell at the next available price that could be lower. Some cases significantly lower if there's a gap in price , so that's why it's important to consider position sizing. And
you know how much of a portfolio do you want to have tied into an individual stock? So even with 50 shares of you know $11,000. That would be a little more than 10% of $100,000 account. Um so consider even smaller. If one has a smaller account when it comes to that, hence also why there may be some attraction to options with smaller accounts and with smaller positions.
Let's go ahead and we'll send this one through. Big point part of the confirm incentives that we're double checking or size our price. And as well as our potential exits. There's our target price. There's a potential stop price. That's bracketed. I'm gonna go back and
the price was locked. Now, watch this. This is a common mistake. Ah if I go ahead and unlock thit limit and that stop order. Ah so I'm going to kind of let that be in floating there a little bit. Because prices can move around. Notice When I do change this, it will adjust. Ah it'll actually
lock in the price. Versus continued update it. I do have a price that's kind of right at the market there, so we'll see if with this one gets filled Again. We'll send that through. And those we went ahead and we filled 50 shares. For this example this some will continue to monitor on a regular basis here. Let's go ahead and double check or agenda here and let's go ahead and look at some of your questions and comments to appreciate James. Helping out.
As I'm going through here, there was a question on On those fractals. Says How well do fractals work in less than daily patterns well, The concept of the fractals is looking for candle reversals, typically the CAHOLDs when price closes above the high the low day and in the case of a bearish reversal, which is priced closing below the low of the high period. I should say period because if you look at an hourly chart, it will do the same thing. Now Yes, if you do look at entry day activity, things may get a little choppier at times. But the principle of technical analysis is the same. So if you
do struggle on identifying highs and lows in the trend or identifying areas of support as well as resistance, those fractals can be kind of connect the dots. To identify those potential support and resistance areas. So great question. There do appreciate that. Let's go ahead and continue on with our discussion. As we go ahead and we take a look, uh, with the example of Federal Express now there can be some profit management that can kind of come into this. I ideal being. We have a distance from where our entry is to where that Ah, target is. One common approaches
if the price is made half of its move And so going from Let's see. We're looking at about 2 32 to 48. That's 18 points if my math is right. Half of 18 is nine. So let's say the price
goes up to let's say 2 39. We can kind of mark that on the chart there, okay. The price makes about half of that move.
One consideration is to adjust the stop to a break. Even now, as far as on a stock trade, those orders can be displayed on the chart. And even on the chart, I can left, click and drag to kind of that break even or close that entry price thus in an attempt To reduce. The risk on the trade. Keep in mind stops are not guaranteed. But if we do have a higher stop Triggers at that higher stop, then potentially, we may be able to get out at closer to a break even or as the price is more profitable can be adjusted accordingly. I'm not going to do
that since we obviously haven't had that move, but That is something to consider on managing the tree. Another thing to keep an eye out is for a bearish candle reversal. And look for that again. With that
trigger point of being What waiting for at least half that move to occur. If we see price trade or close below the low of a high day, and this was pretty close to doing that. That would be a potential end of a swing. Those who have joined us last week. I believe we did do a swing trade odd. Colgate
Palmolive. Now, This is kind of a lower Delta stock, but it was one of the few bullish examples in a bearish Way there. Notice I did the same principles of applying And this trend wasn't even as strong necessarily as Federal Express, but we did have a breakout a bullish reversal. Prices were getting back above its moving averages Notice. I
still got the fractals measuring from a swing low to a swing high. Took that same. Line that same period. Right click, you do a duplicate line. And then projecting from the low of that flag. To look for another potential target. Now, in this
case, when a little more conservative and looked at just that previous high Previous highs. As well as a swing target . One may have one or multiple targets. So currently still targeting that 83 35. Now we started off. Ah with that bounce This is again from I believe last Tuesday. Ah! Price did
bounce. And continued trading higher Now today, ah kind of consolidating Now, this isn't quite The halfway to that target. So some traders may wish to be a little more patient. And not follow a barrier signal until we at least have a move. We are already have a stop in place. Cause the idea being is that if we adjust or stops too soon, The tendency is being knocked out of that trade before giving at least some time for the price to make that move.
Okay? Looking at some of your comments there. Kevin said FDs practice is lower than Ah, 6 23 22. Why is this a bullish trend? Let's make sure we double check on that thought, he explained. As far as with the principles As far as price making higher highs and higher lows. And I think
what you're looking at here from a short term, that price did take out this low. Yep, that is a deeper retracement. Ah certainly not overall strong momentum. But notice as far as this intermediate trend we're focusing on more weeks. Potentially going in two months.
We have an example of higher lows as well as higher highs. This is very shorter term in that perspective. So keep that in mind. And also looking at
some of these previous highs. Ideally. And this is kind of your point. Their cabin. Is as I kind of highlight some of these previous highs. This is a little
more of a blowback. Into I'm going to remove some of these swings here. This is a little bit of a blow back into some of these areas here. Ah ideally, first swing trade if we can hold previous highs. That would be ideal. This did. Bust a little bit below there that knows only spent one day below there and we do have a strong Candle reversal long range days, implying a little stronger momentum. Okay?
And yes, when it comes to swing traders, this type of chop can be a bit of a challenge. And Ah, in this market. We're just trying to do the best we can with that. So great feedback there. Alright, let's go ahead and take a look at another example. Mm And let's see what we got here. Bear with me for a
sec. A little background. Issues going on here. Go ahead and look at E, A sports. Now this one's a little more on a On a counter move and just want to kind of give you an idea as far as looking at potential bullish reversals again, the topic of our Breakdown reversals that'll be tomorrow. You know, EA sports
had previously been on a downtrend. Had a strong. Bit of a bullish reversal is price broke that down trend, but it kind of blown back into that pattern. Now it is kind of holding some of the low ranges. Of what it had before that last dipped down. Some traders may refer to this as kind of more of an inverse head and shoulders kind of shoulders had Higher lows form in a bit of a shoulder. Now we're seeing a bit of a strong bounce here. Ah Some
traders may look at this as an initial sign. Of a reversal. However, if I go and connect the dots with That Williams fractale willing to wait for before considering a trade. That's why I want to show you as a contrast to our Federal Express example knows more recently has been making lower highs and lower lows. We're seeing a bullish bounce, it's going to big counter To this trend. So some traders may be looking for is looking for a break of that downward trend as far as a sign there. Notice that we're also still below that 55 period moving average. So this is a
little more on a contrarian side. And going against some of that existing trends. So hopefully you saw that as a little more of a contrast compared to Federal Express.
Let's look at another one that may be relatively stronger there. Ah, let's see. Bring up Apple. Now Apple as we kind of compare the trends of some of the other ones. This one has
been more to the downside, but notice depending on how one may have drawn notice. This is breaking the downtrend. And notice kind of similar to what we looked at the previous stock. Lower lows, transitioning into higher lows. Question is, Will
this translate into a higher high? Okay? Ah, again. From a swing perspective. We do see a CAHOLD-- price trading above the high the low day and some traders may look at trading that swing Keeping in mind that there still is a downtrend. And would encourage you to practice with some of these different techniques. As I'm going to go ahead and Show an example of that swing if there was a successful swing similar to this previous move up on Apple, this could be the beginning of a bullish reversal knows if this swing continued it would get above that 55 period moving average. Wouldn't quite take out
those highs from May. But those highs from May would be more of that sign of that bullish reversal. So again kind of showing. As we look at some of
these examples based off of how the market is sold off, you know, there could be a little bit of a fight of that trend now with some traders may opt to do is instead of tying up a bunch of capital on an individual stock, they may consider looking at an option or maybe as an example of an option spread. Being able to find a limited amount of capital as well as potentially define that risk. And maybe an example for apple. We can take a look at that. Because now we're seeing little more potentially sideways price action and possibly to trade up in that range. So I'm gonna do
is I'm going to go to the trade tab here. For Apple. And this is something that I teach in, Um My Long verticals and diagonals class, which is on Thursdays. If we want to go out a certain period of time, let's say in this case 45 days I'm gonna go ahead and look at Some calls here. And we're gonna look to profit, potentially profit from an upward move. How are we going to define on? Where that move? Maybe. Ah let's say a as an
example. I'm going to look at an option that's a little more in the money. And we teach us in our options course via education tab. We also teach some
workshops and I'm doing an advanced one next week that actually goes over this strategy, so keep an eye on the events. Let's say, Go ahead and look at Ah! I'll look at this 1 35 strike and notice that's about $11.15. So if I click on that At $11.15 is going to be times a multiplier of 100. So if I click on confirm, and sen, that's $1100 that was that significantly less than if we did let's say 100 shares of Apple Which would be $14,000. Now the risk is this entire amount can be lost, but we could potentially reduce this risk a little bit more also notice this is one of the challenges with options If the stock doesn't move in this case above 1 46 that's about $5 away. Ah this
trade will lose money. It will expire worthless. Okay? I'm gonna go back and utilizing our technical analysis and looking at the swing. Let's say we
believe in the next, you know, 30 days 40 days that the price would at least be trading up in this higher range. Ah we can go ahead and look at the 1 45 area. Uh, depending on the strikes.
You know, we maybe I'll select different dollar amounts. If I go back to the trade tab here. This is in $5 ranges. Ah let's say I was going to target The 1 45. 1 45 is pretty much getting at or above that 55 day moving average. So I'm gonna go ahead
and Hold the control key. On the think or swim platform, and I'm gonna go ahead and click sell for this 1 45. Now it created what's called a long call vertical spread. So here's the pros and cons of this. The con
is 5. 78 Times, 100. That's the most that we can. That's where we would potentially losing this trade. Ah it's called a Max loss , but keep in mind, particularly after expiration if options are into money that can result in an assignment. Of the short strike
or an exercise of the long strike may result in a stock position. Whether long or short , we're looking to manage this trade before expiration. Okay and notice. The profit is also limited but can be significant.
That's about believe in 80% or more return on risk. Plus as we look at the break, even the price doesn't necessarily have to move that far down for it to be proper, profitable at expiration. Now for a swing trade. We're looking to try and
target or capture about half Of this maximum profit. So when I talked about half the move in the case of the stock trade in this example we're looking at about half of that potential maximum gain to manage the profit potential profitability of that trade, and we already defined the risk by limiting too. That 5 78. Keep it in mind position size is important, so I wanted to risk about $1000.01 contracts about it. If I do two contracts, it would put me over 1000. So I'm gonna do is I'm
going to go ahead and edit this. Pretty close to the current price there. I'm gonna send this one through. And we'll see if that one gets filled. Now I've done some examples of this actually with puts so you can see that we do focus on what's happening in the market kind of here and now. Ah these ones have
not quite captured 50. Of that maximum gain, but they are profitable. Ah the other consideration is around time. Now, this one on Expedia we got about 10 days left. These options would expire and there's no potential gain on that. After that, I go in and bring up Expedia XP. No surprise did
trade down to a support area. We are potentially seeing a bullish candle reversal. So just like this may be a potential entry for a bullish trade in the case of a bearish swing trade. To the downside, this could be a potential exit. So a combination of that and then also 10 days, since there's not much more room for possibly the profit the roller to trade to roll over again. You know, and close this
out. That's not a significant gain there, but it's certainly not a significant loss so I can right click create a close in order. And then go ahead and close out this position. Okay so basically managing. Winning trades is kind of the idea here in the case of group global payments, which was a put spread to the downside. Somewhat
profitable. This one actually still has more time 45 days, so you can probably be a little more patient on this one. You can see the idea and focusing on more of a down trend and the downward swings. This one hasn't quite made halfway that moves. So even though there's a little more of a bullish candle here It would be a little more patient get a little more time to see if that price rolls over and trades down to that level. Okay? Now I know we covered a lot of ground here today. Let's go ahead and
double check making sure we're meeting our objectives here. Now some of you may have stumbled on this class for the first time, and there may be a lot there to digest. I was taking some of the basic principles of swing trading and focus in on a real time market here, primarily from the context of a bullish swing that I know many of you that are starting off. Probably can grasp
your hands around. But there's also bearish opportunities as well. And we cover these types of trading opportunities each and every week so some additional resources for you to consider here folks is one go and buy the education tab. Whether on tdameritrade or think or swim. Once there, go to education. And go ahead and select. In this case, you can go
ahead and select Stocks. Now once you're there on stocks a great reference here for you is go ahead and take a look at her technical analysis course. Now you may see that up at the featured education. But scroll down a little bit under media type. And you'll see a link for course. So great Follow up to
this is taking a look at the stocks. Technical analysis course If you drill down into that course, you'll see some of the principles that we've talked about. Such as trend, support and resistance. Also utilizing some of those moving averages. Relative strength is another topic I discuss in this class as well as tomorrow's class and breakdown reversals. If you
scroll down a little bit here, too, you'll see a sample investing plan. That kind of supports some of the topics we talked about today it's called a bull flag. Sample plan. But it focuses on some of the principles as far as trend. Momentum. And utilizing those support bounces. As well as potentially resistance breaks.
Also If you go back. And take a look under education and go to options. If you want to learn more about different options strategies, you'll be able to see that under the options content Ah, both from a basic standpoint. Which is trading
options. And starts getting into spread's Then options for volatility, which gets into some of the other spreads. It may be a little more advanced, okay? Also as far as our various Webcasts. Be good education slept Web Webcast. This is how you can go ahead and keep track of everything that we do, in fact, a great resource for you. If you look at the bottom of the screen here is a link. To trade
or talks. If you click on subscribe, you can turn on notifications and be informed of not only my upcoming Webcasts but webcasts that are taught by James and some of our other instructors. Likewise on that education tab. You can go ahead and see her upcoming Webcasts. As well as going into the archive Webcast if you want to view this Webcast again Ah, you can go ahead and search by instructor There was John McNichol. And you can see some of the other classes that I teach on a regular basis. Now I
didn't see a survey. James remind me if there's a survey that we have here, but what I'd like for everyone to do before they go is considered clicking like For this Webcast. Collective welcome those of you again that may have stumbled on this or got an invitation for this. James went ahead and shared the link for our different webcast so you can go ahead and bookmark that. But it doesn't look like we have a survey. So if you can click like I do appreciate that. I like to
thank James for helping out on the chat and also for you for joining us as well. I did say, as far as reviewing quick market conditions here. Let's see if anything's fundamentally changed from what we had looked at at the top of the hour. Looking at the S and P. We're potentially seeing a higher low. And we are
potentially seeing a close. Above the high of that low day, however, not as forceful as we saw in some of those other stocks. The NASDAQ, however, A little more forceful as interest rates have shot down. Ah a bit
over this last week, week and a half. We've also seen commodities drop off considerably, so a little more of a benefit for those growth stocks as we're potentially seeing a higher low Higher, high, more sign of reversal. Russell, are you T Coming up. Potentially price. Closing above the higher the low day in fact, looks like it did that on Friday , and we're seeing a slight more follow through after look pretty ugly in the morning. And once
again are the Bulls able to capitalize and make a successful swing out of this? So stay tuned on that, folks. Ah not a heavy week for news. But we go ahead and take a quick look under research and ideas. Look at the
calendar. Some impactful news for Traders alike. If we look at our economic events. We got the job openings coming out tomorrow along with the FOMC minutes. Which lags as far as what we got from The announcement this past month. That could be some catalysts for bulls or bears to show themselves. As we go into
the rest of the week, typical job numbers. Inventories can be important here, as I think builds, maybe stocking up. And then going into Friday. We got the unemployment rate and payrolls coming. So there you
go, folks. Once again hope you enjoyed what you learned here today and remember, in order to demonstrate the functionality of the platform, we had to use actual symbols keeping in mind. Tdameritrade does not make recommendations. Determine
suitability of any security or
2022-07-06 19:01
