Home > The master plan

The master plan

Font Size:

"Why does swing trading work? Simply because fast moving stocks tend to pause for a few days before they explode again. Just look at any candlestick chart! Stocks keep on cycling every 3, 5 to 7 days. In other words for, every three-day gain there will probably be a down day. For every five-day gain there may be three down days. A seven-day rally may produce up to five down days.
And the great thing about swingtrading is that there is never a shortage of new opportunities. We just need to wait patiently for the right stock to cycle..." - MrSwing

Step1: WHAT - Finding swing opportunities

There is no shortage of new opportunities, and MrSwing.com helps you find them. To start, you can sign-up for MrSwing Lite, which sends you a list of swing opportunities before the stock market opens on Monday.

I also strongly suggest signing up for my charting software specifically designed for swingtraders, SwingTracker. There is no substitute for seeing the charts, and all of my technical indicators are included. In addition, SwingTracker has an excellent scanning engine so that you can find the stocks you want to swingtrade. (A full explanation of the scan feature is located in the SwingLab section of this website.)

Step2: WHEN - Entry techniques

Buying AFTER the open is BETTER
wait a few moments to allow the market to breath normally

Technique 1: Long Swing Entry	Technique 1: Short Swing Entry
Buy the stock from the moment it trades 0.06$ (=1/16) above its previous day's high. As soon as you buy, place a stop-loss order 0.06$ below the low of the previous day or the entry-price - 4%, whichever is higher.	Sell the stock short from the moment it trades 0.06$ (=1/16) below its previous day's low. Once you sell short, place a stop-loss order 0.06$ above the high of the previous day or the entry-price +4%, whichever is lower.
Technique 2: Long GAP Entry	Technique 2: Short GAP Entry
Used on stocks that gap up or down at the open by 0.5$ (=1/2) or more. Once the stock has gapped, we wait for 5 minutes on a DOWN gap and we wait for 30 minutes on a UP gap. After 5 or 30 mins, we put a buy-stop order 0.06$ above the high of the new day. And we place a stop-loss order 0.06$ below the entry day's low. In summary, we use the 30-min buy rule when trading in the same direction as the gap and we use the 5-min buy rule when trading in the opposite direction of the gap...	Used on stocks that gap up or down at the open by 0.5$ (=1/2) or more. Once the stock has gapped, we wait for 5 minutes on a UP gap and we wait for 30 minutes on a DOWN gap. After 5 or 30 mins, we put a sell-stop order 0.06$ below the low of the new day. And we place a stop-loss order 0.06$ above the entry day's high. In summary, we use the 30-min sell rule when trading in the same direction as the gap and we use the 5-min sell rule when trading in the opposite direction of the gap...

Step3: HOW - Exit techniques & riding the waves

Our money management principles can be summarized in easy rules:

Stop-Loss Order - place your stop the moment you enter a trade. We exit our trade from the moment we have a 4% loss. We are not second guessing the trade... no problem... move on to the next swing trade...there is never a shortage of opportunities! To do this, we ride our trade using a trailing stop. After each day, we simply move our stop-order to 0.06$ under the low of that day for longswings. And we move our stop-order to 0.06$ above the high of that day for shortswings. However.. we never set the stop loss at a lower/higher price than the day before.
The 50 percent rule - from the moment we have more than a 7% gain on the long swing trade we sell 50% of our shares...and we cover 50% of our shares on a short swing...
Riding the wave - we ride the rest of our trade using a trailing stop. After each day, we simple move our stop-order to 0.06$ under the low of that day for longswings. And we move our stop-order to 0.06$ above the high of that day for shortswings.

Gaps - be prepared to sell your positions if the stock gaps UP for longswings and to cover your short positions if the stock gaps DOWN for shortswing. We use the Long-Gap-Entry-rule as our exit-long-rule & our Short-Gap-Entry-rule as our exit-short-rule

GAP Modes!

"LONG Swing GAP: be prepared to sell your long positions if the stock gaps UP and to buy your positions if the stock gaps DOWN...

SHORT Swing GAP: be prepared to short your positions if the stock gaps UP and to cover your short positions if the stock gaps DOWN..."

- MrSwing

We will show you how the 4% loss & 50% & the riding the wave-rules can be executed with ease, discipline and no stress with ThinkorSwim everyday. We will only use stop & limit orders with our preferred brokers. See "ThinkorSwim."

SUMMARY