Swing trading offers a less time-consuming, less risky, and less capital-intensive alternative to day trading, making it suitable for beginners or those with busy schedules, focusing on holding positions for days or weeks rather than minutes or hours.
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are you too busy to day trade and do you
think that day trading is too fast and
too risky for you if that's the case
then swing trading might be perfect for [Music]
[Music]
you welcome back to another humble
Trader video on my channel the last
couple of months I've shared many swing
trading dedicated videos and the
response has been amazing so thank you
today we have a highly highly requested
video The Ultimate Guide to swing
trading for beginners swing trading is a
great way for students or part-time
traders who are too busy with a regular
9 to7 job to make some side income it's
overall a lot less time consuming than
day trading and takes less starting
capital and a lot less risky if you
struggled with day trading or looking at
charts all day then swing trading is
definitely for you in today's ultimate
beginners guide to swing trading you're
going to learn getting started with
swing Trading the right mindset and
expectations because spoilers you're not
going to start banking Lamborghinis in
two months then you'll learn about
technical analysis for swing trading
you'll learn about the time frames as
well as indicators next we'll talk about
swing trading chart patterns my
recommended swing trading brokers and
last but not least once you've gone
through all the foundation listed above
then you're ready to learn my favorite
swing trading strategy as always if you
enjoy educational video like this please
remember to drop a like down below and
subscribe to see more first let's start
with how to get started with swing
trading why should you even choose swing
trading in the first place over day
trading through my many years of day
trading I've seen many pro day Traders
gradually transition to swing trading
and there are very good reasons for that
when you day trade you entering
positions inaday often in the first two
hours of the market open and you are
closing the position in the same day in
a couple hours minutes or sometimes in
seconds this kind of environment is very
fast-paced high adrenaline and yes you
can make a lot of money really fast but
you could also lose that same amount of
money just as fast so it's really really
stressful and after over 10 years of day
trading in that kind of high stress
environment I wanted to slow down a
little bit so that's the reason I
started swing trading a lot more last
year so in trading means instead of
holding a position for a couple seconds
minutes or hours you're holding the
trade for more than one day sometimes
weeks or even months so you can see just
from the longer holding period for your
positions that means you don't have to
care about the intraday fluctuations of
day trading which also means you don't
need to sit in front of the computer
looking at charts all day looking at
tickers it's less time consuming overall
and generally it's less stress for the
Trader and requires a lot less Capital
now of course there's also downside to
swing trading as well I'm not just going
to talk about the good and not the bad
because of everything I shared earlier
swing trading generally leads to slower
account growth compared to day trading
at least for most swing Traders you can
also flip the other way around as well
and see swing trading as less risky and
it's less likely that new Traders will
lose their entire trading account in one
day because that's something that's very
possible in day trading trust me I've
seen that happen to many day Traders and
had that happen to myself as well when I
was starting out as a beginner so if
you're actually interested in learning
swing trading then you just need to be
prepared for a much slower action
instead of using the fast-paced intraday
charts you should be looking at the
daily stock charts or even the weekly
charts and don't worry we'll be going
through all the technical analysis and
chart patterns in the next section of
the video If everything I just said
sounds appealing to you then let's move
on to the next part technical analysis
for swing trading now let's dive into
the exciting part of technical analysis
for swing trading we'll be talking about
charting time frames indicators and
supply and demand key levels let's start
with the most important aspect charting
time frame in trading time frame of a
chart refers to a length of time that
the trend is presented in a market it is
used by both day Traders and swing
traders to analyze price movements and
make decisions based on their trading
Styles and strategies so in day trading
most Traders will use smaller time
frames such as the 1 minute chart or the
five minute chart but in swing trading
the lowest time frame most Traders use
is the daily chart then the weekly chart
and sometimes even the monthly chart if
you think about it this makes a lot of
sense you're holding positions for days
weeks or even months instead of a couple
of minutes so you shouldn't let every
single tick on smaller time frames
distract you from the bigger picture and
that's why the daily chart which you can
see up here this is a default for most
swing Traders this is the chart I use
the most as well as the weekly chart
that you can see over here I only use
smaller time frames such as the 5 minute
charts or the 15 minute charts that you
can see here to execute my
orders next let's talk about the concept
of supply and demand this is a very
important aspect of technical analysis
to understand especially if you're doing
technical swing trading which is the
kind of strategy I'll be sharing with
you later in the video on the daily
chart over here you can see we have the
stock Google have you heard of them you
can see backing around like what June of
uh last year the stock peaked around
this 190s area and pull back all the way
down to this area let's call it one 168
165s here and then bounced off and went
even lower to
155 then down here to let's call it 149
at each of the lines that we just drawn
you can see that the stock after selling
off from these levels it kind of bounced
off that area multiple times you can see
here it bounced off this 164s went back
up to 173s and went even lower to
155s came back up to 160 you know 5S
area and sold off to 150s and after that
bouncing over back to the levels of 165s
again and the reason the stock bounced
at these Green Line these areas because
they were buyers there waiting to buy
the stock there is demand there which is
why these areas are called demand zone
or support Zone in general these are
areas of interest for buyers and these
are the areas where you should look for
your potential swing trading entries now
back to the Chart here you can see that
after the stock bounced off these green
lines it went all the way back up to the
174s area after it bounced here it went
back to 164s 150s back to 164s then it
went back to highs over here around 180s
then again after it bounced off this
support area went back to New highs
around the 190s which talked about and
even 200 up here and after the stock
Peaks at these red lines areas it pulled
back meaning that after hitting those
levels you can see the stock go back
down lower sometimes even selling off
drastically you can see that will be the
example here after hitting this 181s it
sold off drastically back down and 20
points lower same thing here after it
hit 200 it pulled all the way back down
to 188
and the reason the stock pulls back at
these red lines that you see here on the
screen is because there were sellers
there waiting to sell the stock and get
rid of it there is Supply that's why
these areas are called Supply zones or
resistance basically the opposite of
demand or support these resistance areas
are where you should look for potential
exit to sell and take profit on your
swing trading positions I do want to
make one thing clear though these
support and resistance lines are not
just some magical line that the stock
candles just bounce off for no reason
these lines or zones represent
significant price levels that people
have historically agreed to sell or to
buy so we must make sure to chart these
areas out because it's likely that it
will happen again but it's never
guaranteed next let's talk about
indicators on the daily chart and I will
will specifically be speaking about
indicators that I use for swing trading
before we continue if you're enjoying
this very comprehensive video guide on
swing trading so far please remember to
drop a like down below so even more
people interested in swing trading will
see this video and I really appreciate
it okay now continuing with indicators
first of all indicators are very
subjective every swing Trader uses
different pairs of indicators for me I
use the daily SMA here which is the
purple line you see on the daily chart
the simple moving average as well as the
8 EMA which is this orange line that you
see that's a lot shorter this is the 8
EMA exponential moving average and on
top of this pair of indicators I of
course use volume which is the volume
bar you can see at the bottom over here
okay let me talk about each of these
indicators I use in details here and
break it down to you why I like to use
them so that start with the 8 EMA again
that's the Orange Line you see over here
8 EMA is a momentum indicator I use it
to see if a stock is currently
uptrending in a breakout or
consolidating for either a move up or
down for example you can see this stock
R GTI it's been breaking out and riding
and shooting up along this Atma this
very strong momentum another example
over here you can see the stock is
breaking out pull back consolidate and
break out higher along this uptrend on
the 8 EMA I will explain even more about
these chart patterns in the next section
of the video but for now you just need
to know that you can use this 8 EMA to
write momentum on your swing trades to
the upside the next indicator we'll talk
about is 200 SMA simple moving average
which is the the purple one that you can
see over here the purple line here
that's the 200 SMA the 200 SMA is a key
indic Ator used by Traders and Market
analysts to determine the long-term
direction of a stock like the number
suggests 200 SMA it's a very long-term
moving average this line you see this
purple line essentially calculates the
average of the stock price over the last
200 days and why do you need to know
this as a swing Trader in general stocks
below 200 SMA is considered weak and not
ideal for swing trading or investing on
the long side and vice versa stocks
above the 200 SMA is considered bullish
and more ideal for swing trading or
investing again this is all just
technicals of course we're not talking
about fundamentals and because of this
very general concept I do not swing
trade stocks below the 200 SMA or at
least not with the strategy that I'll be
teaching you today okay let's talk about
the third indicator this is pretty
universally used for most day Traders
and swing Traders Traders and that is
volume this is the volume indicator here
down here below the volume indicator
shows you A visual representation of how
many shares of a stock is traded in a
single time period so at the bottom
volume bar here you can see the volume
for each of these daily candles so you
can see on this day the stock Goog
Google stocks traded 97 million shares
and on these lower days it traded only
about 52 million million volume is an
important indicator I Ed it help with
entering my swim positions as well as
exiting for a loss or take profit we'll
go through the details with actual
examples in the next
section okay let's talk about chart
patterns shall we this is often a very
highly debated Topic at least in day
trading and often quite skeptical about
all these chart patterns that you see
here that you can memorize and print out
on the internet
when they are used for intraday in day
trading just like technical analysis
chart patterns are subjective but for
swing trading large cap stocks
specifically I actually really enjoy
using them not because these patterns
work 100% of the time again nothing in
trading is ever guaranteed but because
I've seen these daily chart patterns for
swing trading repeat again and again in
the past for large cap stocks the reason
for that is because when you're swing
trading the charts are a little bit more
forgiving and you have the luxury of
time to let the trade work out and show
you whether the pattern or the setup you
have in mind is indeed working out or
setting up as you had expected so in
general there are three chart patterns
that I want to share with you today and
these are especially important if you
want to become a swing Trader the first
chart pattern is the breakout pattern
this is an important one so pay
attention this breakout chart pattern is
a foundation of the Swing trading
strategy that we're covering in this
video again this is my favorite strategy
so let's talk about what is a breakout a
breakout is a price action that occurs
when a stock is breaking through a daily
resistance now you can see that we're
starting to tie all the technical
analysis Concepts we learned earlier so
let's take a look at this Tesla chart
now on the daily chart you can see that
on the daily chart there's some
significant resistance here so that's
draw all the resistance as you learn how
to do so earlier around this 165 you can
see another resistance here tested once
and twice around here 158 okay let's
just use these two for now so you can
see at both of these resistance the
stock tested many times that 165 area
once here another time here one more
time here and once it gets finally gets
above those resistance that has tested
previous previous times it finally
explodes remember a breakout is only
strong if a stock has already tested
that resistance a couple of times before
usually at least two or three times one
more time here you can see the stock
tested that 159 area here one around
November of last year one more time
again couple weeks later and one more
time here and boom once it breaks out
the breakout here is explosive through
that key resistance level
and you might be able to tell by now
just from the screen sharing demo here
why this is my favorite chart pattern
for swing trading once a stock breaks
out of a multi-week or multi-month
resistance it can continue going for
multiple days just like Tesla here from
158 all the way to
483 that's more than 100 points per
share so let's take a look at some of
the examples of a breakout um peners
another one over here you can see once
it broke through that resistance here at
44s there's no going back and there's
another example here you can see some
resistance here around this area here
it's tested that once twice three more
times and then it breaks out and goes a
lot higher one more you can see this is
a crazy mover last year MST once it gets
through these long-term resistance this
is a multi-month resistance here here
here and one more time here around
October or November then you has a huge
breakout uh from 178 all the way to
$500 we will return to these breakout
charts later when I share with you the
swing trading strategy so make sure you
remember these okay now let's talk about
the second chart pattern which is the
opposite of a breakout breakdown so just
like we talked about earlier a breakout
is when a stock breaks through a key
resistance then that means a breakdown
is when a stock breaks down and breaks
below a key support So if you take a
look at this djt over here you can see
some resistance around here the stock
bounced off this area here here and here
you can see once it broke down that area
here 32s it actually broke down a couple
of times here here one more time and
this is the fourth time of a breakdown
once that breaks down it sold off all
the way from 33s down to $12 so that's
another example of a breakdown um
another one I think uh AMD has some good
breakdown examples you can see back here
once it broke through these support
areas here here each time once it broke
through this long-term support here it
sold off to the next level down 153s
when that once that breaks down one more
time it sold off to the lower level
support at 130s and
120s the next chart pattern is
consolidation chart pattern
consolidation is when a stock is trading
within a tight range for a period of
time for days or weeks consolidation
chart pattern is important to identify
because it usually leads to powerful
breakouts or breakdowns so let me show
you an example here you can see this AMD
chart before it had a breakout here from
183s to 220s over here it was trading
sideways for a while in this range in
this range over here this what we call a
consolidation it went up to 180s pull
back down to 163's back to that same
area tested it many times this is a span
of you know at least a month actually in
this consolidation the stock usually
needs to consolidate before a major
breakout another example here you can
see a smaller and not as you know
apparent consolidation area you can see
the stock had to trade around this range
here for a while until it break out once
that fails it sells off going back to a
Tesla example we had earlier you saw
this uh explosive breakout here then
that's because that's a result of a
consolidation of a stock testing the
same resistance and support for a while
this is for a couple of weeks here from
mid November to mid December before it
was able to break out you can see not
every stock needs to consolidate to
break out or break down but sometimes
these consolidation areas will provide
us swing Traders really good entries to
get in so you can position yourself with
the correct risk reward before the stock
actually breaks out quick reminder I
share a lot of trade ideas for both
swing trading and day trading and talk
about all these daily charts patterns
that you just learned I share them in my
free weekend watch list in which you can
sign up for free down
below all right now let's talk about
swing trading brokers and tools that I
personally found very use useful I think
it's a general good practice to keep
your swing trading account separate from
your day trading account this way you
don't get itchy fingers and take profits
too early on your swing trades when you
are day trading the same ticker or
having a bad day in day trading because
that's happened to me many times before
the Brokers I like to use for swing
trading are Centerpoint Securities and
interactive brokers I'll leave links to
any sign up promotions down below I
actually really like the mobile app for
interactive brokers I often times just
execute my entries or take profit while
being on the phone they also allow you
to use OC orders or bracket orders on
the mobile app which is very convenient
and allows you to manage your day trades
or swing trades very easily I use both
interactive brokers and Centerpoint
Securities to execute the swing trading
strategy that we'll cover in the next
section other Brokers that you can also
check out and consider are Weeble they
also have really good mobile interface
and the desktop is pretty friendly as
well to beginners and they're commission
free only in the US for charting wise I
recommend using trading view I use them
for all the demos you see in this video
okay let's talk about the exciting part
that you've all been waiting for my
favorite and very simple technical
breakout strategy for swing trading
there's a three-step process to the
swing strategy step number one which is
finding stocks to swing trade okay let's
cover this now this is a very important
aspect before we go to the entries and
exit portion of the strategy I always
use a scanner to find stocks that fit my
swing trading criteria during the middle
of the day after 12:00 p.m. eastern time
this is perhaps the biggest difference
in terms of my stock scanning process
between day trading and swing trading
for day trading I usually scan for
stocks to trade during premarket hours
but for swing trading though I will have
this swing trading scanner that you see
on the screen over here I'll have this
on during the middle of the day after
11:00 a.m. Market time an idea for this
scan template is very simple I'm simply
looking for stocks large cap stocks that
have already started gaining volume and
momentum earlier in the day and I want
to get in for even more follow through
during the breakout move on the daily
chart so to do that you can see here
opening up the templates here I'm
looking for stocks greater than a dollar
per share I'm looking for stocks greater
than 1 billion market cap again I don't
like to trade penny stocks or small caps
for swing trading it's too much gamble
you either wake up broke or you wake up
rich and I always wake up broke for
volume I want to see at least 500k for
the middle of the day and I want to see
that the stock has already moved up at
this positive on the day 3% and you can
see once you update the set here in a
scanning template it shows me a bunch of
different ideas that fit the criteria I
had inputed this is a stock scanner I
help develop in order to fit my trading
strategies and my Styles all the
settings I mentioned earlier is
basically in this midday movers for
large cap swings template so every time
I'm scanning for swing ideas I just
click this during the middle of the day
and the scanner will show me a list of
potential swing trading ideas for
example you can see this top idea here
oo I know the stock is about to break
out just from looking at the chart you
can see it's testing that daily
resistance once it breaks out you'll be
prime for another move to the upside
okay once you have this list of
potential ideas you're ready to move on
to step number two step number two
Technical and chart pattern analysis so
it's time to bring in a lot of things
that you learned earlier the daily
breakout chart patterns and the
technical indicators the hdma and 200
SMA so from the list of ideas that you
saw earlier you want to go through the
list like I did with OKO earlier and see
how the stock is reacting to those two
EMA pairs so you want to see how they
are reacting to the 200 SMA and the 8
EMA so and what I'm looking for
generally speaking is I want to see if a
stock is hugging and trending along that
orange line here the 8 EMA or if they
had recently broken down like you can
see on this test that chart here if it
broke down I want to see if the stock
has a history of reclaiming above that 8
EMA again so let's take a look at the
oako chart that we saw earlier you can
see this oako chart had the history of
breaking out along the Atma bouncing off
it even while it broke down of the Atma
it was able to reclaim this many times
once twice three times and now it's
attempting to break out again so that's
good that's something you want to see
for the potential trade idea now where
does the 200 SMA Comm in this is another
filter that qualifies the swing
candidates remember I wouldn't recommend
swing trading stocks that under the 200
SMA even if they are hugging and
breaking out along that eight EMA so you
can see OKO is well above the 200 SMA
that's fine but this AMD here this is
the example earlier you can see this is
not so I wouldn't recommend this idea
another one is Google this is a recent
idea that I picked up from the scanner a
couple weeks ago once you can see the
stock is well trending above the 200
smma reclaiming that Atma after the
breakout and it's starting to
consolidate we talked about the daily
consolidation chart pattern here you can
see it's starting to do that here so
this is another idea I have for
consolidation along the Atma for a
breakout above that resistance some of
these tickers that you find on the
scanner may not be the perfect stock to
take for this technical swing trading
strategy right away but you should
always keep them on a watch lless they
might not be ready for the day you found
them but they can set up a few days
later or a few weeks later for a
breakout remember what we mentioned
earlier swing trading is about taking
very few and very selective trades you
want quality not quantity step number
three executions entries and exits okay
so we talked about the criteria earlier
the stock has to be broken out of a
daily resistance in an uptrend along the
8 EMA and have a history of reclaiming
that 8 EMA and big picture wise it needs
to be above that 200 SMA so let's talk
about entries once the stock has proven
to be riding along the Atma after a
breakout my ideal entry is as close to
the adma trend as possible so if you
take a look at this Google example here
you can see that previous resist
resistance is this area here around 19s
and you can see it has been riding along
and breaking out of that Atma so if you
get rid of that consolidation area here
that we're seeing then I want to get in
as close to that 8 EMA as possible again
remember we are swing trading not day
trading you not looking for position or
entries precisely to the scent you're
just making sure that your overall trend
and direction is enough for you to
capture the breakout move so obviously
you want to get in as close to atem as
possible and ideally not on these at Ma
breakout around 200 like I would wait
for it to pull back closer to 190s or
even right below the 8 EMA so if you
look at this Tesla example here you're
looking to get in along these eight EMA
consolidation areas here around 330s 3
40s and as for exit you're looking to
sell into any major EMA breakouts
hopefully for a profit so you can see
like for this one you want see right
along the Atma once it starts pulling
away from that orange line like here and
here again and here especially that's
when you should take your profit I
usually like to sell my swim positions
in partial sizes in quarters actually so
I'll sell 1/4 into the breakout another
1/4 and keep at least half to continue
trailing along the ATM and once I've
taken partial profit the stop has moved
up to break even and as for the stops
will be below 8 EMA if a stock closes
below the Atma like this candle here
that's when I would be stopped out as
you can see this technical swing trading
strategy is very simple requires only
two including volume three in the ators
and the entry and exit is extremely
simple this is the way I see swing
trading it's a lot less complex than day
trading and the charts overall is more
forgiving and you have a lot more room
and time to let the trade work if you
have any questions regarding technical
analysis for swing trading chart
patterns swing trading brokers or just
my swing trading strategy overall feel
free to ask me down below and again you
can sign up to my free weekend watch
list if you want want to see my trade
ideas for both day trading and swing
trading if you enjoy this free video
course on swing trading then you should
check out my swing trading strategy
breakdown in which I made over
$100,000 on Nvidia in a swing trade all
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