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Swing Trading
Another strategy that you can consider is Swing Trading. This type of trading is
good if you are considering a Stock that has the potential to move up and down
in a short time period. With this strategy, you are not going to be that interested
in the values of the Stock, but rather the trends and patterns of their prices.
In a perfect market scenario, Stocks are trading below or above a baseline value,
which is also what we called ‘a moving average’. When you are experimenting
around with the charts, you will be able to see a set of moving averages that will
fit to the actions of the price, and this can help you out with your trading
decisions. Someone who has been in the Stock market for some time would
know that they should buy near the bottom of the moving average, and then they
would sell before it reaches the target moving average.
There are quite a few pros that can come with this trading strategy which
include:
This is a good strategy for beginners who are trying to get into the
market and still makes some profits, mainly because it is relatively
easy to execute.
You can use the basics of this kind of trading strategy in any market

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that you would like. Big board Stocks, Futures, XCM, and Forex also
use swing trading.
However, there are also a few things that you need to watch out for. Swing
trading is not an option that everyone is going to be fond of. Some of the cons of
choosing swing trading as your strategy include:
It is not easy to find a perfect market where a particular Stock is
going to end up trading between the resistance and the support levels.
This can get even harder to predict when there is a strong downtrend
or a strong uptrend that are at work.
Penny Stocks can make it hard to time your buys the right way,
especially when dealing with dilution on the Stock that you
purchased.