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Re: Trading With A Plan: Devising a daily trading plan
Hi Rich,
The style of trading you are referencing is known as "Swing Trading".
A swing trade can be characterized as a trade initiated to be a short to intermediate-term trade, typically based on a daily timeframe that has the objective of capturing stock or market swings lasting between 2 to 5+ days. Most traders define swing trades as a trade position that is intended to be held overnight, and commonly appeal to traders seeking to capitalize on multi-day moves without having to monitor their trades during intraday movements.
There are several types of trading techniques traders use with in swing trading. These techniques can be based on technical analysis which uses price action and volume as the primary inputs. Other techniques can be based on fundamentals analysis of the underlying instrument (stocks, options, futures,…).
Once you determine which technique you feel best fits your personality then you can begin incorporating this and other key ingredients into your trading plan as Soultrader has commented on.
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