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Hi all, so I have been swing trading and been pretty successful at it. What I mean by successful, I dont lose much, although I miss out on stocks still going lower and RSI still dropping.
here is an example I use below. So, I usually sell when RSI is high then try to enter when RSI is low with MA indicators. In the picture below I do see the 20MA (yellow) and 50MA (blue) is still in an uptrend, so that gives me a sign that stocks are still going to go up and decide my risk right there and sell on the 2nd RSI spike. So 2nd rsi spike, I set my stop loss around there in case it drops, which it did. but sold on market at that 2nd spike.
Now my 2nd run, if you noticed when the RSI dropped, I am trying to find some indicators that the shares are still going to drop. RSI is down, the 20 crossed the 50, so my guess is, it will still continue to go down and I am essentially waiting for another RSI dip to move in, but its a risk that its going to swing up again and lose my chance. there is also low volume which kind of demonstrates that it will keep falling in price. Any other tips or advice? So I guess what I am asking is, how can I tell another RSI dip is coming? im hesitant to enter on the first dip in case another one comes in.
Ive been swing trading this way for some time and been making pretty ok. But issue is, I sometimes miss the stock going a bit lower to buy at a lower price resulting in more profits I could have made. Same when I am trying to sell. I see an RSI spike with an up trend and sell at the first RSI spike and the stock continues to go up from lets say 25 to 30 then drop back down to 15 a few days after. I missed that additional 5. Or is that just part of the risk/reward?
Recommend reading Mark Minervini's books on investing. And strictly going off your graphic and the MAs you're using, why not wait for confirmation of an uptrend using your 20-day MA?
Recommend reading Mark Minervini's books on investing. And strictly going off your graphic and the MAs you're using, why not wait for confirmation of an uptrend using your 20-day MA?
the man won with 151% returns, ill def be listening to him. I also use that as an indicator. But its almost for certain if I see rsi and 20 together, but happens less frequent. I do pretty well on the sells, but entering is usually when I am trying to use multiple indicators to grab the lowest possible
I look at IBD's RS rating, just so I can see how strong it is compared to the market. Ideally over 80, or even 90... but 70 is the minimum. You'll never be able to get the very bottom or the very top, so I wouldn't worry about it. If the way you've been trading has been working well over an extended amount of time, just stick to it.
RSI and Stochastic use lookback windows of a range. By just going sideways after a decline, those two indicators will rise. If you plot the 14-day high price and 14-day low price, you'll see why. Most people that rely on them look at a longer chart and see how the indicators worked for that stock. They work with a limited number of stocks. I used to know a broker who only followed and traded 17 stocks in his account.
RSI and Stochastic use lookback windows of a range. By just going sideways after a decline, those two indicators will rise. If you plot the 14-day high price and 14-day low price, you'll see why. Most people that rely on them look at a longer chart and see how the indicators worked for that stock. They work with a limited number of stocks. I used to know a broker who only followed and traded 17 stocks in his account.
I actually found a great oscillator that helps manage the trend of the stock and helps me pick up the pattern. That mixed with the RSI seems to hold the pattern very well, but only future trades will tell me. thank you! I also use stochastics, but not very in depth. I will take a look at this. Thank you so much!
OP, I am no longer a day trader. When I was, though, I only followed 4 stocks and only traded those four.
It worked out well for me, and I made money. I did not trade every day, though. If I opened up the computer and indicators were not all up, I just closed it and found something else to do.
I switched from day trading to long term investing when I became convinced that one of my interests - NTRA - had a long term potential that far and away outpaced the others, which were NVTA, EXAS, GH. Maybe some time next year I will slowly begin to unwind my position of 2000 shares of NTRA. It should provide long term income of some sort forever....
You might try some variation of this.....
BOL
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