Essential Skills for Swing Traders: Part 3
We’re all aware that there are a myriad of ways to approach identifying pullbacks in the market, from simply cherry-picking securities to using complex variations of multiple indicators. We rigorously test and retest to create quantified pullback trading strategies that produce maximum consistency and accuracy.
One of the factors we prioritize is the ‘quality’ of the pullback, something that’s been institutionalized over the years in ‘buy and hold’ trading – looking to buy stock in companies with long histories and proven performance records. Our research team learned through experience that trading these stocks short-term produced greater returns than trading high-volatility stocks with little to no history or public awareness.
Click here to discover a systematic, quantified, and simple-to-apply approach to swing trading.
While most money managers have focused their investing and specifically pension fund investing in the S&P 500 as dictated by their clients, the greater majority of that money is tied-up for long periods of time while they constantly look to take advantage of lower prices elsewhere. This has resulted in more managers jumping on value opportunities when they see them and effectively stabilizing and boosting a security to revert back to its mean. While the larger institutions are gobbling up value when they find it, they are providing substantial opportunities for swing traders to trade these securities in the short-term.
It’s nice to know that these opportunities are available, but in order to fully take advantage and capitalize on these trades you need a quantified, systematic strategy with precise entry and exit levels for each trade.
We’ve developed a new way to identify and trade these quality pullbacks, and consider it one of the most important fundamental skills for successful swing trading. By using ConnorsRSI to both identify these pullbacks and pinpoint the exact entry and exit levels, we’ve been able to create strategies that consistently yield impressive winning trade rates and average p/l per trade statistics.
If you want to learn the proper way to buy quality stocks on pullbacks, we’d like to invite you to attend a take a 5-minute tour and watch the first class –for free– to learn more about the upcoming Swing Trading College – Summer 2013 sessions.
Click here to register for your personalized tour of the material covered at the Swing Trading College – Summer 2013.
Click here to read Essential Skills for Swing Traders: Part 2