By Steve Gomez

In this post, we offer a bounty of tips for those delving into the fascinating world of swing trading. Armed with these insights, you’ll steer clear of trading mistakes and enhance your trading strategy.

Section 1: Look Before You Leap: End of Day Candle Tip

A proven strategy employed by experienced swing traders revolves around the closing candle on the daily chart. All too often, traders can fall victim to their emotions, leading to premature selling midday. Unreceptive to the idiosyncrasies of the market’s fluctuations, they fail to observe that the trend often reverses and bounces back, resulting in a long bottoming tail at the end of the day.

In Markdown format, this episode of hastiness can be humorously represented as:

"Waited until midday...Sold prematurely...Watches price reverse and bounce back...And ends with a self-facepunch emoji 🤦‍♂️."

“Can’t tell you how many times I’ve gotten emotional and ended up selling at midday, only to watch it reverse and bounce back with a long bottoming tail at the end of the day. And every time, I just want to punch myself in the face, thinking: why did I do that?”

As swing traders, the paying attention to the daily chart is pivotal. On days where the field of trading seems thorny and you can’t wait to sell, remind yourself to wait for the closing candle. Have patience in tending to your garden and keep in mind:

Section 2: With Caution: The Market Stop Order

The second tip addresses one of the more intricate nuances of swing trading: the use of market stop orders. This tactic, although valuable at times, should be approached with caution. My advice: don’t place them during the market’s opening hours.

Why, you may ask?

Well, as skilled as you may be in discerning the optimal points for your market stops, rest assured: trading giants like Citadel and Virtue, and quantum funds have the big guns, employing state-of-the-art algorithms to find and feed on them.

So what’s the alternative? It’s simple: during the first half-hour of the market, hold back your market stop orders, allowing things to settle down. Following this settling period, you can safely place your stop orders. Thus, instead of falling prey to these behemoths, you circumvent their tactics and keep your trades safe.

"Don't be their victim, don't be their food."

In conclusion, swing trading, with its potential highs and lows, requires a careful approach, steadiness, and the application of these insightful tips. By monitoring the closing candle and strategically placing your market stop orders, you’ll avoid common pitfalls and allow your trading garden to flourish.

Armed with these tips, happy trading!