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Swing Trading vs Day Trading Forex, Stocks and Futures Video

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swing trading vs day trading forex
swing trading vs day trading forex

Swing trading vs day trading Forex, stocks or futures – which is best for you? This video (and article) compares swing vs day traders side-by-side, providing a clear guide for you.

You’ll learn about swing trading requirements, the disadvantages of day trading, and even swing trading vs day trading Forex.

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VIDEO TRANSCRIPTION

Welcome to this video on day trading versus swing trading Forex, stocks and E-minis, which is the best. Let’s get right into it and do some comparisons here.

First of all let’s define our terms. I define day trading as getting in and out during open outcry hours. So that means you are totally flat by the time the market closes. And for that we are using intraday charts.

Now for swing trading, generally swing trading means holding for about 2 days to 14 days. I use daily and weekly charts when I am swing trading which is little different from some people. Some people use long-term intraday charts and so they might hold just for 2, 3 or 4 days.

I do it a little differently. I use daily and weekly charts and the primary reason I do that is because I am also day trading. So I don’t want to have to look at my swing trades while I am day trading.

SWING TRADING VS DAY TRADING FOREX, THE STOCK MARKET AND E-MINIS

I still swing trade but now I learned something, that I don’t like that exposure to overnight risk. That can really mess you up so now when I swing trade, I hedge with options. Because a protective stop is not enough. I had a protective stop in but it went right through that protective stop because it happened overnight.

There’s also a benefit of that overnight risk that a lot of people don’t talk about. They just say oh yeah, overnight risk, eliminate that and that’s why day trading is better than swing trading. Well again you can minimize that with hedging but then also remember there is an upside to that overnight risk.

If the market goes up 50% in the direction of your trade, well that’s something you just cant get with day trading. So you can get these big high profits with swing trading overnight as well. Just depends on which way the market moves; in your favor or against you.

DISADVANTAGES OF DAY TRADING

Day trading requires a good attention span. So a lot of, which one is right for you is going to be psychological. It’s not that one is better than the other. But one might be better than the other for you, for your mindset. So if you have a good attention span, you sit there and focus on the market. You got to watch the market tick by tick, bar by bar for day trading then that can be great for you.

You might not even be able to do it for 6 and a half hours a day, and you don’t have to. A lot of people who day trade will only trade for maybe an hour or 2 or 3, and in fact that’s what I do now. I only trade for 2 to 3 hours a day when I am day trading. And if you can focus for that period of time, then you are golden.

DAY TRADING VS SWING TRADING VS POSITION TRADING

With swing trading, you don’t really need to be sitting there and watching every single tick in the market. So a great attention span is not as required.

With day trading, you may need a larger account if you are day trading stocks. So, I’m not going to go into it a lot here, but ask your broker about the pattern day trading rule, look it up online, but you’d be best to talk to your broker about it. A lot of times you’ll need $25,000 account in order to do day trading if you fall into the pattern day trading rule. At least that’s here in the US.

There’s way around that of course. You could be day trading futures, or day trading forex, and there is different rules for that. So in that case, you can actually have a smaller trading account if you are trading those markets. So the irony is that it is also possible when you are comparing with futures or forex. You might need a larger trading account if you are going to trade stocks with swing trading. Because the risk that, at least the way that I trade, the way I define my maximum risk per trade is based on the range of the bars. And on a daily chart which is what I use for swing trading.

HOW TO START SWING TRADING

That range is a lot bigger than the range on a intraday chart, and therefore the amount of money I had after risk is larger. So you, I would need a larger account. So these are, you know things you have to look at depending on the market that you are trading. And which your money and management rule is. My money management rule is I want risk more than 2 percent of my trading account at any one given trade. So to keep the risk minimal, down to 2 percent, I got to have a bigger account in order to do that.

Now a lot of people talk about stress. And they say day trading is more stressful than swing trading. And it can be, it can be. So if it’s stressful for you to sit there and watch every tick of the chart come through, then please be aware of that. And again that’s a personal thing that you need to take into account.

MOST SUCCESSFUL SWING TRADERS HEDGE THEIR POSITIONS

The average income of a swing trader can be disrupted overnight by a market gap against their position. For this reason swing trading may not lend itself to you sleeping well at night! Day trading, Your positions are all closed, you are good and you can sleep well at night. So swing trading may be less stressful during the day but again overnight, it’s possible you might have trouble relaxing if you are not watching positions and again that’s more of a personal thing. Best way to overcome that again is in my opinion hedging with options.

BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at Barry@TopDogTrading.com, and I’ll show you how to get access to that indicator.

What did you think of this tutorial on swing trading vs day trading Forex? Enter your answer in the COMMENTS section at the bottom of this page.

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons.

FREE GIFT!

Also I’m giving away one of my favorite trade strategies that works in trading the markets. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

Those interested in swing trading vs day trading Forex also showed in interest in this video:
http://www.topdogtrading.com/swing-trading-strategies-stocks-mcclellan-summation-index/

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Swing Trading Strategies Stocks Tutorial with the McClellan Summation Index – Video

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Swing Trading Strategies Stocks with the McClellan Summation Index
Swing Trading Strategies Stocks with the McClellan Summation Index

Swing trading strategies stocks using the McClellan Summation Index is a great option for those who have a day job and can’t do day trading. Using this swing trading tutorial can potentially help you find good swing trade stock picks.

The swing trading techniques in this video can be used to help you potentially make some extra money on the side. If you learn to trade well enough, you may even build up your skills well enough so you can swing trading stocks for a living with the McClellan oscillator formula as part of your trading method.

The summation index math can be used for NYSE or Nasdaq charts and is available for many charting platforms including the McClellan Summation Index for ThinkOrSwim.

Was this video on Swing Trading Strategies Stocks with the McClellan Summation Index helpful to you? Leave a message in the COMMENTS section at the bottom of this page. 

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VIDEO TRANSCRIPTION

One of my favorite swing trading strategies stocks is to use the McClellan Summation Index. It is derived from the NYSE McClellan oscillator chart which is a breath oscillator indicator. Basically it is measuring the advanced issues, less declining issues, and then the summation index math is following that and creating different types of patterns on it.

SWING TRADING TUTORIAL

Here’s one of the signals that I will take: a divergence, like this. And I like this one but what you really need to have here is more than just this. Like any other, this is not really an indicator as such, it’s an index, or statistics. You see that kind of divergence there and those are pretty good. So the key here is we get equal highs and then we get a lower high. So equal highs on the price action but then lower highs on the summation index. So basically whats that telling us is of course that we are seeing underneath the price action that declining issues are starting to increase over advancing issues.

MCCLELLAN SUMMATION INDEX

Number 1, look at the date. It’s May. You probably heard the phrase that ‘You buy in the fall and then in May go away because we are heading into summer months, and so that’s one signal that you want to look for here and then indeed it does go down and down and down through the summer. So that gave us a very nice signal time wise seasonally if you will, based on the seasonal cycles that we should get out and then in October it starts going back up again.

So did we have a signal to go long back in October? Well yes we did again. If you look at that, we get another divergence pattern here. There are equal lows, little bit a higher low there I guess if you draw out from the lower candlestick pattern. But then we get a shift, higher low on the McClellan Summation Index.

These aren’t always long term signals by the way. Sometimes they are just a short-term signals, but that’s why we got to use them with, with everything else. All the other things you have in your trading toolbox. It’s one more piece of evidence. Here we get double bottom, and well equal bottoms at least and then a higher low on the index. And again this is during bullish time of year, February.

SWING TRADING STRATEGIES STOCKS

Now here is a real interesting one and this is the trade I actually took. So this is last fall. We get a little bit of a higher high here. We put in a wave 5. So we got a wave 5 trend up which is an average trend but well you can look and see there for yourself the McClellan Summation Index is heading on down. So it is diverging. We are getting more net declining issues and the market kind of pinballs there between the moving averages for a while and then it goes down down down to the orange line. The orange, moving average there, that’s the 200 simple moving average.

So great place to take out or to get up, and then look what happens. We get into November and November 7th and whats then. Well that was election time; presidential election time here in the US. So great place to exit the trade. We had to rally out of the election and also that coincides directly with the Halloween cycle which starts the bullish time of year based on the traders’ almanac.

SWING TRADING INDICATORS

So again now just recently we had another signal, very dramatic signal actually and we got a wave 7 which is an extended uptrend and then we came up and retested that high and of course again you look down at the summation, and then actually you can see it made a dramatically lower high, and so yes we had a shift there. Its’ a very short-lived opportunity for swing trading strategies stocks

I showed you that because it’s recent, a very recent signal and also because I’d like to show you the things that can happen that are not a deal. I want you have that in front of your mind. So you don’t get over enamored with anything. There is no one thing that makes you money. Everything is a piece of evidence that you put together with other pieces of evidence to establish a probability scenario.

Having said that, this is still one of the best swing trading strategies that work which I’ve come across.

BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at Barry@TopDogTrading.com, and I’ll show you how to get access to that indicator.

What did you think of this tutorial on Swing Trading Strategies Stocks with the McClellan Summation Index? Enter your answer in the COMMENTS section at the bottom of this page.

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons.

FREE GIFT!

Also I’m giving away one of my favorite trade strategies that works in trading the markets. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

Those interested in Swing Trading Strategies Stocks with the McClellan Summation Index also showed in interest in this video:
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Tick Chart vs Candlestick Time Charts for Day Trading Strategies – New Video

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Tick Chart vs Candlestick Time Charts
Tick Chart vs Candlestick Time Charts

Tick chart vs candlestick time chart in day trading: Are they better than minute charts? What is the best tick chart for ES? Can you do tick chart forex trading?

This video will demonstrate 3 advantages that tick charts have over time charts in a day trading strategy … and also 3 disadvantages!

You can use tick trading strategies for the ES, Forex, stocks and futures, on thinkorswim, MT4, Oanda or any other charting platform that allows you to employ day trading tick charts.

Was this video on tick chart vs. candlestick time charts helpful to you? Leave a message in the COMMENTS section at the bottom of this page. 

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VIDEO TRANSCRIPTION

Welcome to this video on tick chart vs candlestick time charts for your day trading. Are tick charts better for day trading than time charts?

There are advantages and disadvantages to each. Let’s begin with the advantages of tick charts. I tend to prefer them. So I’ll show you why but also be very, an advocate for the other side of the equation as well and some of the advantages of time based bars such as minute bars.

TICK CHARTS EXPLAINED

Let’s talk about the difference of tick chart vs candlestick time charts. What are tick charts? Tick charts are bars where the number that you put in; let’s say you create a 1000 tick chart, then each bar represents 1000 trades. In this context a tick is a trade, regardless of volume. Just how many trades go through the market, as opposed to this chart here where we have a 2 minute chart that means that each bar lasts for 2 minutes. So it’s based on time, i.e. that each bar will last a certain amount of time.

On tick charts, each bar lasts a certain number of trades. So you cannot say there is an equivalent of any tick chart to any minute chart because they are just completely calculated on different methods.

TICK CHART VS CANDLESTICK TIME CHARTS

One of the advantages of tick chart vs candlestick time charts is that you generally get a more narrow range at swing highs and swing lows, and the benefit of that is that you typically have a smaller risk on your trades. You are risking less money and that’s a huge advantage and that’s one of the primary reasons that I use them. Let me demonstrate this to you to show you exactly what I mean.

Another advantage is that when you get a lot of volume coming in, it creates a less choppy chart pattern than time charts. You tend to get these more sine waves type of wave patterns. You don’t get as many steep angles because that is offset by the market creating, or the chart creating more bars that go horizontally across. The more orderly pattern that I find easier to trade those patterns.

THE DISADVANTAGES OF TICK TRADING STRATEGIES

Now let’s switch over to the disadvantages of tick charts vs candlestick time charts.

This is the exact same chart but on a 2 minute bar. So you see it comes up, first of all we get a nice big volume spike there and then we get moving up, moving down. See much more clear volume patterns. Very low volume, see we never saw any situation where we had very low volume on the tick bars, but here we do. And that is, you know very helpful in certain situations. That’s important to you, and yeah we have got it right there. Very low volume. And then spiking back up. Much more differences, we got these volume spike bars. So if you like volume, then you definitely are going to want to trade time based bars.

BEST TICK CHART FOR ES

Another benefit of candlestick time charts on the ES (S&P E-minis), Forex or stocks is if you rely on candle sticks a lot, time based bars create better candlestick patterns. And part of the reason for that is again, tick bars create not only more evenly leveled volume patterns but also they don’t create the real wide range bars as much as time based bars do. But candlesticks, one of the ways to read candlesticks is to look for those wide range bars. Those give some nice, very nice patterns. And it’s part of reading Japanese candlesticks patterns.

So on candlestick bars, time-based bars, you are going to get narrow ranged bars, and then you are going to get real wide ranged bars. So again the disadvantage of that is you are risking more on trade, on the swing highs and swing lows. But if you rely on those candlestick patterns, you’re going to get better candlestick patterns on time charts.

DAY TRADING TICK CHARTS

So which one is better? Neither one is better. It’s just a matter of which one fits your personal preferences for the way that you trade. And just be aware that there is pluses and minuses and choose the ones that are important to you.

BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at Barry@TopDogTrading.com, and I’ll show you how to get access to that indicator.

What did you think of this tutorial on tick chart vs candlestick time charts? Enter your answer in the COMMENTS section at the bottom of this page.

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons.

FREE GIFT!

Also I’m giving away one of my favorite trade strategies that works in trading the markets. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

Those interested in tick chart vs candlestick time charts also showed in interest in this video:
http://www.topdogtrading.com/trading-price-action-patterns-for-the-stock-market-and-forex-market/

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Tape Reading Price Action Trading Strategies

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Tape Reading Price Action Trading Strategies
Tape Reading Price Action Trading Strategies

In this video you’ll learn tape reading price action trading strategies. I’ll demonstrate it using the S&P 500 E-minis. Tape reading Forex doesn’t work the same way because spot Forex shows tick volume and doesn’t trade through a central exchange.

You can definitely use this price action analysis for tape reading stocks and futures.

Enjoy this brief price action tutorial video about trading the tape, and consider adding it as a part of your current trading methodology.

Was this video on tape reading price action trading strategies helpful to you? Leave a message in the COMMENTS section at the bottom of this page. 

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VIDEO TRANSCRIPTION

Welcome to this video on tape reading price action trading strategies. What we have here is the S&P 500 E-minis. It’s a 2 minute chart on the left and time and sales over on the right. And you see a couple of block trades just came across there. I have that set to be 50 contracts or more. And we just broke down through a support level here or previous low.

Here’s another block order over on the right, 150 contracts this time. Now I’m fast forwarding here, prerecorded this so that I could edit this down to a timely manner, because I always try to keep these videos under 10 minutes.

TAPE READING PRICE ACTION TRADING STRATEGIES

There’s some selling going on, block order 50, block order 155, sell, and then now you see some of the violet ones coming up, the colors there. Those violet colors meant that the orders came in at below the bid. So there’s more block orders selling, a 100 contracts, 292 contracts, and so again below that low on the price action where you can see the chart.

Now there’s another block order 400, again that’s, if it’s red, it is at the bid. And if it’s green, it’s at the offer, and you saw the violet, that’s below the bid, and if it’s light green, it will be above the offer. Those will show some dramatic, people willing to pay little more, or maybe they’re getting slippage, but you can see we got 3 big block orders there.

This is one of my favorite tape reading price action trading strategies.

Normally when I trade, the E-minis, I set the block trade at a 100. Ok, move forward here again to save some time. I added the volume list around at the bottom. Now we got a big volume spike here. And that below again. The low I put the black line on there, you can see breaking through resistance.

TAPE READING MADE SIMPLE

What’s happening here is we got a lot of selling coming in, look at all the sell orders there. And by the way I have set it up so it doesn’t print anything below 10 contracts. Couple more violet orders coming in, we making sure people are meaning people are really willing to even, get a slippage on those orders.

Now we’re coming back up. There are some green orders coming back down. Remember we got all these sell orders. Here is the point, of all these sell orders, there’s another block 50, another block trade at 200. And so now what they are doing is they are probably shorting into resistance here. They are thinking, okay we broke through support, we come back to resistance and so we’ll take this short here.

Right we fast forward again. Well guess what, now we broke up through that resistance and we have come back up. And now we got some of the light green prints there. So that means that they are trading above the offer. So now they are willing to get some slipperish there.

TAPE READING STOCKS

Price action has broken above that previous support. We got broke below it and now we broken back above it. That break out trade which is basically what probably a lot of those people are doing. They were trading a breakout trade to the downside. And it didn’t work. It failed. And so this is very typical.

BTW, even though I’m showing this using the S&P E-minis, this works well with tape reading stocks too (not spot Forex though).

This is why when I watch price action patterns, I watch it along with, price action in this case meaning watching the tape. This is called tape reading trading. You know there’s other aspects of tape reading.

At this point you could see that yes we’ve really reversed off of that bottom. And now what we are doing is we are breaking through a little resistance, the previous swing high, and as we do that, we got a block trade coming in here at the 76 contracts. And we are just continue to watch the tape, and see what happens.

USING VOLUME WITH PRICE ACTION AND TAPE READING TUTORIAL

Here’s another thing to consider when using tape reading price action trading strategies.

There’s a lot of buying coming in, lot of green. And again we are getting above this resistance level. One of the points here, as we fast forward again, is and now we’ve broken above resistance. And we got a block trade there, 57. And some more green coming in. see if we can hold this. But one of the points is that you notice we had a lot of big orders, oh we got another volume spike. Okay, that’s what we are looking for. So that’s what I was going to say.

But these volume spikes, this is where I look for exhaustion. And I look for people to get trapped. We saw the volume spike histogram on the previous low, and now we are seeing it here at this high. And I actually, you know the thing you might think is, well if we got the big orders coming in, big contracts, hundred contracts, 2 hundred contracts, we should trade in that direction. Not necessarily. Just because there’s people who trade with a lot of money, doesn’t mean that they are right all the time. They get stuck, they get trapped just as much as anybody else.

TAPE READING TRADING

My point is you can’t rely on only using this tape reading technique to trade with the smart money because the smart money doesn’t always make money. And the way they trade is you know rather sophisticated, so they might make money overall. But that doesn’t mean that they are right this time on this trade. They get faked out, they trade breakouts like this. See I don’t trade breakouts, and it’s for this very reason is because breakouts fail too often.

I actually look to fade the breakouts. I can use that using these tape reading price action trading strategies. We are looking for people to get stuck, people to get trapped, even the big traders, and trade against them. And these volume spikes on the histogram can really help you with that. That’s the time to look for those false breakouts. And that’s kind of the key here, the lesson today for this trape reading tutorial.

TAPE READING: LEARN HOW TO READ THE TAPE FOR DAY TRADING

But it’s not only that. You know a lot of people know that. Those are exhaustion bars there. I also want to see traders getting stuck. Because that adds to the probability that that breakout is going to fail. That’s getting in too late.

In my opinion if you are trading breakouts, you are paying retail. I like to get in before the breakout and pay wholesale. So don’t know about you but I’d rather buy low and sell high. Some people say buy high and sell higher. I totally disagree with that. Especially in today’s markets. You might have been able to get away with that years ago but not today.

BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at Barry@TopDogTrading.com, and I’ll show you how to get access to that indicator.

What did you think of this tutorial on tape reading price action trading strategies? Enter your answer in the COMMENTS section at the bottom of this page.

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons.

FREE GIFT!

Also I’m giving away one of my favorite trade strategies that works in trading the markets. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

Those interested in tape reading price action trading strategies also showed in interest in this video:
http://www.topdogtrading.com/trading-price-action-patterns-for-the-stock-market-and-forex-market/

Subscribe to my YouTube Channel for notifications when my newest free videos are released by clicking here:
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