trading platform

In this example we’ve shown a trade based on trading signals produced using a Fibonacci retracement. The three most important points on the chart used in this example include the trade entry point , exit level and stop loss . Any swing trading system should include these three key elements. Many traders use technical analysis as the only method of finding stocks to swing trade.

medium term

Basically, swing trading is a style that attempts to forecast an impending price move in the market and aims to capture huge chunks of profits if that move happens. Swing traders implement a variety of strategies in the market. Some of the most common include reversal trading, retracement trading, and breakout trading. Swing traders may use a Fibonacci retracement indicator to identify potential reversals, support, and resistance levels, as well as place stop-loss orders and set target prices. The Fibonacci retracement ratios of 23.6%, 38.2%, and 61.8% are believed to reveal possible reversal levels. Therefore, swing traders should apply an appropriate strategy to each market environment.

Best Swing Trading Stocks List – Updated

Some swing trades won’t work out because of the timeframe, and that’s alright. Unless you have an account balance of $25,000, you’ll be limited to 3-day trades in a rolling 5-day period. But most brokers won’t even let a 4th-day trade execute — and you could be stuck holding the bag. Weigh these risks against the rewards that might be out there before making that next trade. With a $1 trillion net worth, Facebook is another standard pick for swing trade.

Start swing trading to potentially profit from your trading edge. This is a measure of a stock’s price trend compared to another stock, the industry, or the market index. It compares the price performance of a stock against others. The stocks that have been performing better than the market are regarded as market leaders while the ones that have been performing poorly are regarded as laggards. If you don’t want to be trading penny stocks, make sure you filter stocks based on price. With a market capitalization of around $109 billion, the share of Caterpillar is trading at $199.

From there, you’ll be able to identify a good entry point and exit point. You will have a trade blow-up when swing trading; how you react determines how successful you can be as a swing trader in the long run. Remember, you can adjust your portfolio at any time, and you can use these stocks to your advantage. If they don’t seem to offer the performance or results that you desire, you can move on to other assets.

Because trading is a complicated and risky strategy, reading more about the topic may be useful. The best swing trading books teach you how to be successful with a risky strategy. For correlated stocks, whatever affects one stock also affects the other, and when you lose money in one, it’s almost certain the other would be a loser too. It is very important you avoid stocks that are closely correlated. One rule of thumb is to avoid choosing many stocks from the same industry or companies that offer related products. Liquidity, for the most part, is a function of the volume of the stock transacted each day.

  • The more times a market bounces off a support or resistance line, the stronger it is seen as being.
  • Fibonacci retracements can help traders establish optimal price entry areas when swing trading.
  • For instance, you can certainly combine swing trading strategies with a full-time job, which is impossible with day and scalping strategies.
  • When using channels, it is important to place trades only in the direction of the main trend.
  • A stock trader is an individual or other entity that engages in the buying and selling of stocks.

Profit on each trade is substantially smaller as the holding period is smaller. But these small profits can add up to a good overall return. Just because your stock screener brings in a candidate, doesn’t mean it’s automatically a great swing trading stock pick. You need to validate it – looking deeper into the technical analysis and determining if 1) it does in fact meet your criteria and 2) where the opportunity is.

Meta Platforms Inc (NASDAQ: META)

These platforms provide an assortment of tradeable instruments, multiple trading platforms, and advanced tools. Many online trading platforms do not require you to have a minimum balance to start trading but, the majority of investors start with $ $10,000. Interactive Broker offers stocks from over 90 different markets. Swing traders have an extensive selection of stocks, including Asian and European exchanges. However, it’s important to remember that investing always comes with risks, so make sure you understand the potential rewards and losses before making any investments. When you decide to close your position, place a “sell” order at the higher end of the price oscillation.


Open an online trading account with Mitrade, which offers low spreads and a selection of global markets to trade in. You may need to provide identification documents before you are allowed to open an account. 365.82 billion U.S. dollars in the same year, showing that it is a financially stable and reliable stock.

How To Find The Best Stocks For Swing Trading

The red line is two standard deviations above the recent average. PD stock is above this level as well, and it could be the trigger to sell or short PD stock. But if a short position is taken, a good place to have a profit target would be around $275. There’s a good chance there is support there once more and GS stock will stop going lower. You can’t see it on this chart, but last February XLRE stock ran into resistance at this level. This means there’s a chance it hits resistance there again.

pick stocks

Let’s take a look at how you can use these scanners to find different swing trading setups. As mentioned, swing trading is very reliant on technical analysis. And a great way to apply technical analysis is via raw price action analysis using candlesticks patterns. When tracked keenly, candlesticks can form patterns in the market that can give vital price action cues. If the market is strong, you can wait for the channel line to be hit.

There are also periodic price shifts, making the stock an excellent prospect for swing trading. It has had highs of $236 and lows of $88 in the past 52 weeks. The stock has enough liquidity and price action for swing trading. Swing trades aim to capitalize on buying and selling the interim lows and highs within a larger overall trend. Technical indications are more important than price ratios and debt loads because this isn’t a long-term investment. It may be a profitable swing trade even if a company has a ton of long-term debt and minimal cash flow.

A logical place to get stopped out is around the $12.10 level. If it got back up there, it means the buyers have returned. The swing trader who went short would buy back their shares and take a small loss if it got back up to that level. This means that if GOOGL stock does go lower, there will probably be buyers around that level. This means it would stop going down and the swing trader could buy back their shorted stock and make a nice profit.

It provides electronic payment solutions to merchants and consumers, with 426 million active users in 2021. Access a user-friendly platform and app to enjoy easy, low-cost trading. This is a key point, because the benefit of practicing Swing trading is that you need not only target price appreciation, you can do shorting as well. The MACD oscillates around a zero line and trade signals are also generated when the MACD crosses above the zero line or below it . Arch Resources is an American coal mining and processing company.

In its second-quarter report, the company reported a 29% increase in sales, with sales recorded at $12.9 billion. The increase in sales was majorly due to high user demand, favorable impact from changes in dealer inventories, and favorable currency and price realization impacts. Get Started Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content.

And with that, are usually in and out of a position in a few days or weeks. Overall, most of this trading style is based on technical market indicators. And that makes a few tickers stand out as some of the best swing trade stocks on Wall Street. Swing traders are subjected to the unpredictability of overnight risks that may result in significant price movements.

When swing trading stocks it is essential to choose the right assets to trade, as bad market selection could be a major weakness in your trading strategy. Make use of these tips to enhance your market selection efforts. Utilising tools such as our pattern recognition scanner, you can spot trend reversals and other price signals to help inform your swing trading efforts. Support and resistance lines represent the cornerstone of technical analysis and you can build a successful stock swing trading strategy around them. Another thing that some swing traders are to group stocks with solid fundamentals under “potential buys”, while those with weak fundamentals under “potential sells shorts”. The below graph shows the share price performance of Caterpillar stock.

It is important to do your research and keep up with the news to identify the best catalysts for swing trading. Unlike with day trading, you’ll hold onto a stock overnight at least once. Then you use technical analysis to decide when to sell, in hopes of maximizing your profits. There are numerous strategies you can use to swing-trade stocks.