Stock Idea Swing Trading Example

swing trading stock idea examples

Read why swing trading stock idea examples are worth watching closely…

Stock Idea Swing Trading Examples can help you learn how to regularly extract profit from the stock market. And while I write about a variety of stock trading ideas on this blog, some readers have been asking for stock ideas that make good swing trading examples. So…

Read this swing trading example to get an idea of how I combine value investing with swing trading to find safe stock idea swing trading opportunities. You’ll notice this is a unique blend of fundamental and technical analysis that gives a more comprehensive approach than strictly technical swing trading and speculating. Sound good? Then here’s the example…

SYA – January 2014 Stock Idea Swing Trading Example:

SYA is a company that I featured as a January 2014 stock idea. And below I will show you how and why I have been swing trading this stock idea. Then after reading this stock idea swing trade example you should be able to pretty easily see the value of this safer approach to swing trading.

So here’s the first thing you should know about how I swing trade my stock ideas…

I do my very best to never swing trade fundamentally bad stock ideas. This separates me from a lot of purely technical swing traders. But focusing on fairly-valued businesses gives me way more conviction in my trades. And since SYA has demonstrated strong earning power and is trading at a discount to book value I feel much more comfortable swing trading the consolidation than if it were an overvalued penny stock. Now with that in mind check out this swing trading example video…

Stock Idea Swing Trading Example Video:

Now Here’s a Chart of the SYA Stock Idea Swing Trading Example:

stock idea swing trading examples

Look at this stock idea example of how I swing trade stock ideas (click to enlarge).

In the stock idea swing trading example above, take a look at the arrows indicating where I have been buying and selling SYA. I’m not a technical analysis expert but I generally have luck buying oversold stocks and selling when the stock is overbought (as denoted by the Bollinger bands, as well as support and resistance levels). Keep in mind…

I usually buy 1/4 or 1/3 of a position at a time. This way I don’t worry as much about timing the exact top or bottom of any given swing trade, but I can scale in and out of my position as the market moves with and against me. And finally: If the fundamental thesis remains strong and the stock continues to constructively consolidate (putting in a long base of higher highs) I will increase my position so I can maintain exposure when the stock eventually breaks higher. Make sense?

This sample approach to swing trading allows me to build positions in companies I like and actively compound my investments to improve my stock portfolio returns. It’s not the fanciest strategy but this swing trading methodology described in the example above is what I’ve used for years to extract profits from stock ideas I like, even if they aren’t immediately breaking out. A lot of traders use this type of swing trading to profit from their stock ideas because it’s an easy way to blend fundamental and technical analysis. I’m definitely not the only one…

These “technofundamentalist” methods are described in books like No BullHow I Made $2,000,000 In The Stock Market and The Best Trading System. But seeing an example of this swing trading in action might help you learn how to implement swing trading techniques in your longer term stock ideas. Do you think this kind of swing trading can work for your stock ideas?

And By The Way: If you want to learn more about how to swing trade your stock ideas sign up using the form below. You’l get my free mini-ebook which details more of the techniques I use to find swing trading stock ideas. Check it out…

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