Saturday, July 14, 2012

Swing Trading vs. Trend Following



Select Your Race





This post is dedicated to all the newbies at Newtoys Tinychat. 
This is just a snapshot, coupled with some of my thoughts, of how Swing Trading and Trend Following look like. 
If you would like to learn more about the methods mentioned here, do your homework and Google it.



Usual Swing Trader Chart - WITHOUT the other indicators (MACD, RSI, STS, OBV, etc.)

Looking at this chart - a swing trader would have 10 times the opportunity to make a killing trade on PXP. 
But doing so requires a lot of time, effort, knowledge and guts to be able to successfully make the trade...


Rewards are Greater in Swing Trading.

But so are the RISKS.


Now to Trend Following:


Trend Follower's Chart - Effective even with only one indicator : The Moving Averages.



Trend followers on the other hand, buy and hold stocks until one of their selected moving averages "snaps." 


In this case, following the 20 Day MA which hasn't snapped... YET!


This method can oftentimes be stress-free and only requires the trend follower to be patient.






So to the Padawans, you could try doing both and see for yourself which method suits you. 
Choose your path wisely. Your Trades Reflect your Character.




Here's some stats I gathered that might help.








But whatever side you're on, what matters is that by the end of the trade, you make a profit.







21 comments:

  1. i love how you made it seem like some sort of videogame. Agility. Strength. Vitality. I think those are all adjectives for my videogame characters! :)- Faceless Trader

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  2. Thanks Faceless Trader.. I love mixing trading to my hobbies. Cheers! :D

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  3. wahahaha. nice post you have here. :D

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  4. master zee..how do you scan the differnt issues...do you check the charts one by one? tnx

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  5. @Anonymous: I usually pick those issues that are on the Top Gainers/Losers.. Then observe it in the coming days/weeks. If movement is 'good' to my tastes, I go for it.

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  6. Thanks master- milly

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  7. Thanks Sir Zee Freaks re: Top Gainers/Losers. I'll do just that.

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  8. thanks sir Zee,

    am learning alot on your generous sharing of wisdom in trading.

    more power!

    strawberry

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  9. Very generous indeed. Thanks Sir Zeefreaks! Bihira na lang katulad nyo. Keep it up!

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  10. Parang yung XMen na cards lang yuhng itsura ng graph mo a. Hehehe :)

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  11. Hi boss, I have been observing this lately and is curious of what's the difference between set-ups of prmx,tfhi vs. plc,lr and apx. Are they all considered TF? If not why? Thank you.

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  12. Hi boss, I have been observing this lately and is curious of what's the difference between set-ups of prmx,tfhi vs. plc,lr and apx. Are they all considered TF? If not why? Thank you.

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    Replies
    1. Anything that is in AOTS and has broken its 6month resistance is a candidate for TF

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    2. In your system, how do you call set-ups like plc, and lr? Do you actively trade these reversals?

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  13. Sir zee, may i ask what games do you play haha

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  14. What if? I choose a 3rd Race, the race of InTrend Swing Traders, the most profitable, the most safest, the most efficient, the Kung Fu Panda's of the Market =))

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  16. Thank you for sharing such valuable information and knowledge. This can be great and helpful insights for us. I would love to see more updates from you in the future.

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  17. hello boss Zee! tanong ko lang po kung may extra indicator kau para hindi mastop out kunware nagfalse breakdown sa 20MA tapos nagtuloy parin pala ung uptrend?

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