Wendy Kirkland’s automated swing trader is carefully designed to quickly find the stocks with the greatest profit potential. So, let’s have a look!
Swing trading is a trading method that tries to capture short-term and medium-term gains on stocks within days.
Swing traders mainly use technical analysis to find trading opportunities. These traders will also profit from quantitative data analysis, in comparison to studying market movements and trends.
Swing trading involves trading that lasts from days to months to take advantage of the expected price movements.
Swing trading puts traders at risk overnight, and over the weekend, the price may vary. The next trading day opens at a much different price.
Swing traders can take advantage of set risk/return rates based on the stop loss. They target returns or take profits based on technical indicators or price movements.
Who is Wendy Kirkland?
Wendy Kirkland was a successful options trader when she did not run a gift shop in Asheville, North Carolina. She has hosted numerous investment groups for women to learn the basics of trading options and share their stories.
Since 2009, Wendy Kirkland has been successfully analyzing market trends and sharing her profit model with other like-minded option investors.
For 25 years, Wendy Kirkland has been a gift shop partner in Biltmore’s historic village in Asheville, North Carolina. The business ensured a good life for her family of three.
Check out various books by Wendy Kirkland about several financial suggestions!
Understanding Swing Trading
Typically, closing deals involve long or short positions for more than one trading period, usually no more than several weeks or months.
It is a general timeframe as some trades may take more than a few months, but investors may still consider them closed.
Swing trading can also occur during trading hours, although this is a rare consequence of extremely volatile conditions.
The goal of swing trading is to make the most of the possible momentum of markets. Some investors are looking for volatile stocks with higher volatility, while others may prefer stocks with a reserve.
In all instances, swing trading is the method of deciding where the value of a commodity is expected to change, holding a spot, and then making a significant return.
Effective market traders try to grab a portion of the anticipated price fluctuations and then push on to the next chance.
Swing trading is among the most common types of active investing, and traders use different statistical evaluation forms to identify reasonable possibilities.
If you are interested in closing a trade, you should be familiar with the technical analysis.
Many swing traders judge trades based on risk/reward. By analyzing the asset chart, they can identify where to enter, stop the loss, and then predict what they can earn.
Suppose they are risking $1 per share on a setting that can generate 3 in profit. In any case, there is a beneficial risk/reward balance ratio. On the other hand, taking the risk of $1 to earn $1 or making only $0.75 is not feasible.
Due to the short-term nature of trading, swing traders mainly use technical analysis. In other words, the baseline analysis can be used to help in the decision-making process.
For example, suppose swing traders notice a bullish setting for a stock. In that case, they may want to verify that the asset base is looking good or improving.
Swing traders usually look for opportunities on the daily chart. They can watch the 1-hour or 15-minute chart to find the exact entry, stop-loss, and profit levels.
The trading time required is less than the daily trading time.
You can maximize your short-term profit potential by capturing most of the market fluctuations.
Traders can rely entirely on technical analysis to simplify the trading process.
In trading positions, there is market risk overnight and over the weekend.
Sudden changes in the market situation can cause significant losses.
Swing traders usually ignore long-term trends and tend to follow short term market trends.
Swing Trading vs. Day Trading
Typically, the distinction between swing trading and day trading is in the holding time. Swing trading usually requires at least overnight positions, while overnight traders close their positions before the market closes.
In short, a day’s trading position is limited to a day, while a closing trade is from a few days to several weeks.
Holding overnight, swing traders will face unpredictable overnight risks, such as the difference between the top and bottom positions.
When taking an overnight risk compared to day trading, the position is usually closed with smaller position size.
Overnight traders generally use larger position sizes and can use 25% of the daily margin.
Swing traders can also get 50% of margin or leverage. It means that if investors are approved to trade with a margin, they must invest $25,000 in equity with a current value of $ 50,000.
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Swing Trading Tactics
Swing traders are usually looking for multi-day chart patterns. Cup and handle patterns, moving average crosswords, flags, head and shoulder patterns, and triangles are some of the most common approaches.
Among other indicators, essential reversal candles can be used to develop a credible trading plan.
Each swing investor develops a scheme and technique to gain an advantage in several trades. It involves looking for trading methods that tend to produce predictable fluctuations in asset prices.
It is not easy, and there are no strategies or settings that work every time. With a good risk/reward, you do not have to win every time.
The more favorable your trading strategy’s risk/return, the smaller the number of winnings needed to win the total profit from multiple trades.
Wendy Kirkland’s Automated Swing Trader
The Auto Swing Trader Wendy Kirkland add-on is an exclusive MetaStock product using its research to provide traders with accurate buy and sell signals.
Auto traders consider overbought/oversold conditions, new trend opportunities, and confirming indicators to keep your entry and exit signals clear on the chart.
Wendy Kirkland’s research, the PPO indicator, and the Kirkland oscillator are also included.
Besides, Wendy Kirkland’s automated traders use MetaStock Explorer to browse through thousands of tools and only show the tools that currently meet Wendy’s trading standards. It is a huge time saver.
Check out these trading mistakes you should avoid!
For those who like short-term trading but cannot spend several hours a day trading, swing trading is a great strategy.
Although it requires a thorough knowledge of the technical aspects, it can produce more successful gains than intraday trading.
As with every type of trade, this entails risks. Swing traders should make sure they have a deep understanding of the technical indicators and market fundamentals that can form the basis of their trading decisions.
Swing traders should also strongly consider setting a stop-loss in case the latest news affects their preferred market direction.