As a trader, do you prefer crazy runners or do you like the smooth movers?
This was the question I posed during Premarket Prep yesterday morning when I was talking about swing trades (smooth movers).
And there’s a reason I’m really excited about swing trading right now…okay, yes, I’m excited about the whole market situation since the election…
But in terms of swing trading, I think we’re about to see a real renaissance.
I’m so hyped up about this, Matt McCall and I talked about it on our most recent SteadyTrade Podcast. Have a watch. It’s completely free!
With lower interest rates, M&A activity will surge, and tariffs will bring a lot of manufacturing back to our shores.
This is good news for quality companies, or what I call “real stocks,” which are ideal for swing trading.
Great for us is that we have an AI bot I helped design specifically for swing trading.
This system has already given us a bunch of winners…
In case you’re not familiar with it, let’s do a deep dive into swing trading.
Table of Contents
What is swing trading?
Swing trading is all about achieving gains that are similar to what you might see in day trading—10%, 20%, 50%, even more.
You’re looking to capture day-trading-like gains while avoiding the rollercoaster ride of extreme volatility.
Typically, swing trades last anywhere from a few days to a few weeks. Beyond a few weeks, you’re getting into long-term investing territory.
Why Swing Trade?
Instead of the crazy, lightning-fast moves you get with day trading, swing trading gives you a more manageable pace.
It eliminates the need for you to be glued to your computer all day long… You can go to work, spend time with your family, and do all the things you can’t do if you’re constantly watching your trades.
To break it down, swing trading provides:
Lower Risk:
Those wild, low-float, short-squeeze stocks are thrilling but they can reverse on a dime.
Swing trading focuses on higher-quality stocks that are more stable.
Yes, there’s always risk in trading, but with swing trading, the losses are typically less catastrophic. That’s Risk Management 101.
More Freedom:
Swing trading gives you your time back. Unlike day trading, where you’re chained to your desk watching every tick, swing trading lets you set alerts and even automate your exits with order types.
It’s ideal for part-time traders or anyone who wants to trade without sacrificing their entire day.
And you don’t have to give up day trading if you’re into that adrenaline rush… You can do both!
If you’re juggling a busy schedule, or you want a hybrid approach, swing trading is the perfect complement to day trading.
How to Find Swing Trades
Here are some boxes to check when you’re looking for good swing trade candidates:
Earnings:
Earnings are one of the best catalysts out there. I talk about earnings season a lot because it’s such a powerful driver for swing trades.
Wait until the market reacts. Did the stock gap up the next day? That’s a good sign…
Catalyst:
While earnings are a catalyst itself, look for other things like a recent IPO, company news, or if the stock is in a hot or buzzworthy sector.
52-Week High Breakout:
Put up the year chart and check to see if the stock is at or near its 52-week high.
Many times, when a stock breaks above a certain psychological resistance level, like the 52-week high, volume spikes, which indicates heavy buying and market interest.
Chart Support:
Still looking at the one-year chart, is there a clear level of support to risk off of? If so we have a well-defined area to manage our risk. We have a clear level to set our stop-loss in case the breakout fails.
The Tool That Does Much of the Heavy Lifting
All of the steps above are a great way to find swing trade plays…
But our IRIS AI bot can help with a lot of that work.
Take a look at some recent swing trade winners, IRIS found for us…
HOOD 1-Month, 5-Minute Candles Chart; SteadyTrade
On September 10, we got an alert for Palantir Technologies Inc. (NASDAQ: PLTR).
PLTR is now trading around $62 and for an 88%* gain.
I see it going to $100.
PLTR 3-Month, 1-Day Candles Chart; Steady Trade
On October 15, we were alerted to Robin Hood Markets Inc. (NASDAQ: HOOD).
HOOD is now trading around $36, for a 38% gain.
But I think HOOD can go to $50.
HOOD 1-Month, 5-Minute Candles Chart; SteadyTrade
Sometimes we get actual alerts from IRIS, like the ones above, but we also get a daily Watchlist.
On Monday, the 18th, Sensus Healthcare Inc. (NASDAQ: SRTS) appeared at the top of the IRIS Watchlist.
IRIS SRTS Watchlist; Iris Analytics
When the Watchlist came out, SRTS traded around $8 per share.
It’s currently trading around $9.20 marking a return of 15%* in just a few days.
SRTS 5-Day, 5-Minute Candles Chart; SteadyTrade
There are countless examples like the ones above, but we could be here all day.
Subscribers to the IRIS program get weekly analyst reports, training webinars, and best of all, access to the IRIS system itself.
The tool operates much like ChatGPT to produce screeners, trading plans, and more.
Watch the presentation below to see if IRIS is right for you…
Master your swing trading strategy with our AI-driven tool today!
My Final Thoughts…
If you’re ready to dive deeper into swing trading, use the tips I outlined above and/or subscribe to our IRIS system. It provides tons of training.
And for more mentorship on swing and day trading, stock ideas, and more, join my StocksToTrade Advisory service.
Every STT Advisory member gets a monthly newsletter with a list of my top picks, three weekly videos with my watchlists, bonus reports, and more.
Sign up for StocksToTrade Advisory right here!
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade