Are you stressed?
I get it, I am too. Trading is stressful, life is stressful.
That’s why I take as much time as I can on the weekends to be outside, do things around the house, go hunting, anything to ease some of that tension.
Of course, I’m still always chomping at the bit for the next trading session. Call me crazy, but I love what I do!
And we’re in the midst of one of the craziest markets we’ve had in some time…The Golden Age of Trading Opportunity!
And I think it’s here to stay for at least three or four years.
Unfortunately, that also creates a lot of trading stress…so many setups every day. We’re all asking ourselves, “How do I narrow it down? How do I spot the best patterns?”
And for many people, the question is, “How do I focus all day long when I have a job, a family, a life?”
If that’s you, swing trading rather than day trading might be your perfect solution.
Let me explain…
Table of Contents
Why Swing Trade?
Swing trading smooths out the crazy volatility of day trading.
Instead of rapid in-and-out trades, you’re taking a more calculated approach.
You’re still aiming for big moves, but with a little more breathing room.
More Manageable Pace:
You don’t have to be glued to your screen every second.
More Freedom:
Set alerts, automate exits, and go about your day.
Lower Risk:
Less exposure to the extreme reversals that take out day traders.
And by the way, you don’t even have to give up day trading if you love that adrenaline rush.
Swing trading can be a perfect hybrid approach, letting you trade actively without it taking over your life.
How to Find the Best Swing Trades
Not every stock is a good swing trade.
You need high-probability setups…You know how much I love those.
Look for stocks with momentum, strong catalysts, and key breakout levels.
Here’s how to spot them:
Earnings Breakouts:
Earnings are one of the strongest catalysts in the market.
Stocks that gap up after strong earnings tend to keep running, especially when they maintain their gains after the initial spike.
If you see a stock that gapped up on higher than normal volume and is holding key levels after the gap up, you might have a prime swing trade candidate on your hands.
Hot Sector & News Catalysts:
Stocks in hot sectors tend to run harder and longer.
Think about quantum computing stocks in late 2024 and this year.
Other catalysts could include recent IPOs, FDA approvals, or big contract news.
52-Week High Breakouts:
Stocks breaking above their 52-week highs often attract heavy buying.
When a stock pushes past key psychological levels, momentum traders and institutions pile in.
Look for a stock testing its 52-week high on strong volume. If it breaks out and holds, that’s your signal to get in.
Strong Chart Support:
Looking at the one-year chart, ask yourself the following questions.
Is there a strong support level to risk off of?
Is there an obvious breakout level where volume increases?
If yes, you have a defined risk area and a solid swing trade setup.
A solid risk management plan is key in swing trading. I always recommend using a risk-reward ratio of 3 to 1.
To illustrate, imagine you want to buy a stock trading at $5 per share. If you think the stock can go to $8 (reward of $3), you should set your stop-loss at $4 (risk of $1).
As I remind my students constantly, always set your stop-loss before you enter the trade. If you don’t, you’re not managing your risk at all.
To identify the chart elements I just described, as well as earnings breakouts and 52-week high retracements, you need a great trading platform.
It should have real-time data, charting, technical indicators, and more.
My top pick is StocksToTrade and I use it every day.
It features everything mentioned above…PLUS, right now, you can get two weeks of both the STT platform and our Breaking News Chat service for $17.
Grab your 14-day StocksToTrade + Breaking News Chat trial today for only $17!
How to Simplify Swing Trading with AI
Finding great swing trades takes time—scanning charts, analyzing catalysts, and tracking market sentiment.
But I have good news…
Our AI-driven tool, IRIS, does a lot of that work for you. I designed it exclusively for swing trading.
IRIS scans the market for high-probability swing trades, using proprietary algorithms to identify the best setups.
The tool operates much like ChatGPT to produce screeners, trading plans, and more.
And that’s just the start. With IRIS, you get daily watchlists, alerts, and everything you need to level up your swing trading game.
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 take swing trading seriously, follow the strategies I outlined above.
And if you want AI-powered insights and expert training, check out IRIS, a system designed to help traders spot swing trade candidates faster.
For more mentorship on swing and day trading, join my StocksToTrade Advisory service.
You’ll also get 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 weekend, everyone. See you back here on Monday.
Tim Bohen
Lead Trainer, StocksToTrade