澳洲幸运5官方开奖结果体彩网

Top 3 Stocks for Novice Swing Traders

Swing traders buy a stoꦐck for a few days, then sell it for a profit after the price has moved higher. That's the goal anyway. If this interests you, the best way to learn quickly is by selecting stocks most likely to help you accomplish this task successfully.

Consider choosing from a group of well known 澳洲幸运5官方开奖结果体彩网:large-cap stocks. These stocks have high 澳洲幸运5官方开奖结果体彩网:liquidity, meaning there are plenty of buy and sell orders available at an minute, and this makes it less expensive to buy and sell quickly🌠.

Key Takeaways

  • Swing traders typically try to buy a stock, hold it for two or three days, then sell it at a profit.
  • Not all stocks are suitable candidates for swing trading.
  • The best candidates have sufficient liquidity and steady price action.
  • Meta (formerly Facebook), Apple, and Microsoft are suitable stocks for swing trading in certain market conditions.
  • To see if swing trading makes sense for you, consider practicing trading before risking real money.

Picking Swing Stocks

The goal of swing trading is to make a small profits repeatedly on many trades instead of making a killing on one trade alone. So it helps to work with stocks that have a relatively calm price action and a predictable trend. Stocks that trend slightly higher, or slightly lower, are good candidates to select from, especially if they exhibit a low degree of fluctuation (a.k.a. 澳洲幸运5官方开奖结果体彩网:historical volatility).

Here are three stocks a trader might consider for swing trading based on their high liquidity and steady price action. It's helpful to follow these stocks and make 澳洲幸运5官方开奖结果体彩网:paper trades before moving to live t༺rades with real money. It's essential to learn how to identify the signs of when to buy and when to sell, but note that market conditions often change, and an approach that worked before might not necessarily make profits in the future.

Important

Note that these are only three good examples, among🐠 several dozen or perhaps even hundreds of ideal candidates to use with a swing trading strategy.

Meta

Meta (META), formerly Facebook, is a great stock for learning to trade 澳洲幸运5官方开奖结果体彩网:trendlines. When you look at the stock chart, you can see♕ that asꦏ the stock zigzags upward, the low points in the pattern all line up. You can draw an approximate line across these low points. That is the lower trend line. Every time the stock hits that line, it can go back up.

What makes this stock especially good to start with is that you can use a moving average line, such as the 澳洲幸运5官方开奖结果体彩网:50-day moving average, as the bottom trend line. Similarly, you can draw a trendlin🍒e across the highs that the stock pricℱe hits.

When Meta reaches th💟at upper trend line, it tends to drop back down to its bottom trend line. Note that these trend lines are approximate. You have to get the knack for knowing when the stock price is about to turn, rather than count on strict adherence to the drawn trend lines.

Approximately 28.7 million shares are bought and sold daily in February 2022, so it is easy for you to find buyers and sellers. This means the stock is liquid, and 𒉰you can easily sell out of your position if the price begins to dꦉrop.

Microsoft Corp.

You can trade Microsoft (MSFT) stock much like you would trade Meta. Once again, the 50-day moving average can s𒆙erve as a rough guide for the lower trend line. The upper trendline can be a bit ragged, which can hౠelp you learn the feel for when the stock may rise and fall.

Important

The best stocks for swing trading might be a lot different in꧅ the future, as market conditions are always changing.

Still, the stock is trending regularly enough that you can count on it to continue its pattern for a while and learn to time your buy and sell points regularly. Draw a line across the highs to determine the approximate value at which you should sell. Note that the longer trendline, the more likely it is that the line is accurate. Roughly 37.2 million shares are bought and sold daily as of February 2022.

Apple Inc.

The stock of Apple Inc. (AAPL) will require a little more finesse than MSFT and FB. Apple has many product launches and announcements that affect its stock price, which can add an extra element to your swing trading. Watch for those announcements and monitor how the stock price responds. You can watch the 澳洲幸运5官方开奖结果体彩网:technical indicators on the chart and combine them with the 澳洲幸运5官方开奖结果体彩网:fundamentals of the company to help time your trades. Over 106 million shares are bought and sold daily as of February 2022.

The Bottom Line

To start swing trading, make it easier for yourself by choosing stocks that consistently show established 澳洲幸运5官方开奖结果体彩网:chart patterns. Typically, large-cap names with sufficient liquidity—like MSFT, FB, and AAPL—are ideal places to start. Next, begin making your predictions about 𒅌the peaks and valleys on the char♊ts, and you might get into the swing of swing trading.

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