Forget the Chart: Stock Trade and Swing Trading Online Strategy
Buying stocks that are down but above their 200 day moving average.
As the old saying goes, "The trend is your friend." How true it is. Yet, so many fight this truth and to their own peril. The market behaves better above its 200 day moving average than below it. And the average gain of the market is far greater when prices have been above the 200 day moving average than when it has been below it. You will find success swing trading online if you follow this rule.
This is not to say that you cannot find good stocks that are worth buying and are below the 200 day MA. But as a whole, without looking at any other indicators, it's easier to make money when buying the market and stocks when the trend is up, not down.
This rule, of course, only becomes increasingly more effective as other screens or indicators are put in place. This would be a good place to go into technical analysis and how a well put together chart can improve your stock trade but that would go beyond the scope of this article. If you would like to go deep into technical analysis (TA) there are many websites that can give you good information (there are plenty of free sites). However, I would ultimately suggest going into your local book store and finding one you can take home and study. With that said, I must admit I am not a huge fan of TA. I have personally found it over done and blown out of proportion as far as its success claims. If you do know how to use several of the indicators (my personal favorites are: MACD, RSI, and MFI) and use them as a group of confirming indicators along with other strategies they can be very helpful.
Forget the Chart: Stock Trade and Swing Trading Online Strategies
This site goes so far as to offer traders $1,001 if they do not make money. They are one of the very few companies registered with the BBB. They even have a FREE professional Trading Coach Session available now. Check them out at: http://www.stocksoars.com
Bob Ebling is a professional day and swing trader. He has served as the head of a stock investing company in the Mid-West.
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