6 Tips About Picking Stocks For Swing Trading

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Do you want to be a successful swing trader? Then you should be able to choose the best swing trading stocks! We have prepared 6 tips for our readers about how to pick stocks for swing trading.

Pay Attention to Price Action

A lot of traders think that watching the stocks of popular companies that are always on the news is the best option. This is not always the best idea for swing trading stocks. Here you need high price action. Stocks like AMD, UBER, NFLX, and several others have high betas. 

Read more on the topic: What is Price Action: why it’s important for Swing Trading.

Keep an Eye on the Trading Calendar!

Remember that news is a key factor that can and will drive price action. Knowing about everything that is related to your company is really beneficial to your trades. For instance, if you trade long with Samsung, it is good to know about their future earnings reports and future product releases. 

Wait! Have you already got a swing trading strategy? No? Then check out this article!

Here is an example with Apple. As you can see, when the company had reported its earnings, the price went up. After the iPhone 8 was released, the price had gone down at once. Watching the calendar, you are always informed about such possibilities!

Leading and Losing Stocks: What About Them?

It is a common situation that the top stocks do not work the way experts claim they would. Usually, they go farther and faster. That is why we recommend watching such stocks because they will give you many trading opportunities.

Read more on the topic: Swing Trading vs Day Trading: What is the difference?

From the other side, the “cheap” names that are considered to be the worst often get even cheaper. The reasons for this are negative news, low earnings, and other similar factors. They are risky but work quite well on the short side. 

Better Late Than Never

If the first phase of a major move is missed, it is not always too late to join the movement. Although you will typically lose part of your potential profits, there still will be a possibility to get some huge earnings.