Trading Question: Swing Trading.

[xdg99667]

Hi all,

I'll admit im new to this and i want to ask a question that may seem a simples to most of you out there!

When you are swing trading, at the entry point, would you allow the price to go in the wrong direction for a few ticks? assuming you have a good indication that the market will swing, or do you cut out immediately if it goes a tick against you a la scalping

thanks

Gary

[hgodden]

Most swing traders would look to get out almost immediately if it started going against them, but really it all depends on your reading of the market. If you feel it is going to turn back in your favour after an exceptional event (such as one large order needing to be filled) then you may be better to wait

[Squirtle]

Swing trading markets tend to be quite fast moving so I hang on for a few seconds but if the trend is not confirmed I am out. It's better to take a few small losses and catch the odd big swing than let your losses get out of control.

When I jump in if it doesn't do what I expect then I just have to get out and start again. Sometimes swing trading can be a bit frustrating but it's great when you catch a huge move.

[xdg99667]

Thanks very much for the answers everyone

i seem to be getting better at knowing if a trade needs to be scratched.

[Point2Point]

Good example here: -

http://www.youtube.com/watch?v=sM5L2QnwbV4&fmt18