How to identify the best swing stock trades?
Asked 4 years ago
I'm starting to become familiar with the stock market, and I would like to identify and buy the best swing trading stock? Are there any strategies that I should know of?
Simon Mugo
Sunday, April 11, 2021
There are two ways to identify the best swing stock trades. One is to use fundamental factors such as cyclical market trends where investors direct their funds to one sector of the economy.
Playing the cyclical trends is a good way to capture the best swing stock trades as some sectors such as growth stocks lose momentum, other sectors such as utilities and value stocks become popular with investors.
The key to picking the best swing stock trades is to take trades in the trend's direction. As we all know, "the trend is your friend".
The second method for picking the best stock swing trades is via technical analysis. Buying a stock that has just crossed above its 20 and 50-day moving averages is a good way to identify the best swing trades.
Furthermore, buying a stock that has just broken above a significant resistance level is another way to ensure you pick the best swing trades.
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