are you too busy to day trade and do you think that day trading is too fast and too risky for you if that's the case then swing trading might be perfect for [Music] you welcome back to another humble Trader video on my channel the last couple of months I've shared many swing trading dedicated videos and the response has been amazing so thank you today we have a highly highly requested video The Ultimate Guide to swing trading for beginners swing trading is a great way for students or part-time traders who are too busy with a regular 9 to7 job to make some side income it's overall a lot less time consuming than day trading and takes less starting capital and a lot less risky if you struggled with day trading or looking at charts all day then swing trading is definitely for you in today's ultimate beginners guide to swing trading you're going to learn getting started with swing Trading the right mindset and expectations because spoilers you're not going to start banking Lamborghinis in two months then you'll learn about technical analysis for swing trading you'll learn about the time frames as well as indicators next we'll talk about swing trading chart patterns my recommended swing trading brokers and last but not least once you've gone through all the foundation listed above then you're ready to learn my favorite swing trading strategy as always if you enjoy educational video like this please remember to drop a like down below and subscribe to see more first let's start with how to get started with swing trading why should you even choose swing trading in the first place over day trading through my many years of day trading I've seen many pro day Traders gradually transition to swing trading and there are very good reasons for that when you day trade you entering positions inaday often in the first two hours of the market open and you are closing the position in the same day in a couple hours minutes or sometimes in seconds this kind of environment is very fast-paced high adrenaline and yes you can make a lot of money really fast but you could also lose that same amount of money just as fast so it's really really stressful and after over 10 years of day trading in that kind of high stress environment I wanted to slow down a little bit so that's the reason I started swing trading a lot more last year so in trading means instead of holding a position for a couple seconds minutes or hours you're holding the trade for more than one day sometimes weeks or even months so you can see just from the longer holding period for your positions that means you don't have to care about the intraday fluctuations of day trading which also means you don't need to sit in front of the computer looking at charts all day looking at tickers it's less time consuming overall and generally it's less stress for the Trader and requires a lot less Capital now of course there's also downside to swing trading as well I'm not just going to talk about the good and not the bad because of everything I shared earlier swing trading generally leads to slower account growth compared to day trading at least for most swing Traders you can also flip the other way around as well and see swing trading as less risky and it's less likely that new Traders will lose their entire trading account in one day because that's something that's very possible in day trading trust me I've seen that happen to many day Traders and had that happen to myself as well when I was starting out as a beginner so if you're actually interested in learning swing trading then you just need to be prepared for a much slower action instead of using the fast-paced intraday charts you should be looking at the daily stock charts or even the weekly charts and don't worry we'll be going through all the technical analysis and chart patterns in the next section of the video If everything I just said sounds appealing to you then let's move on to the next part technical analysis for swing trading now let's dive into the exciting part of technical analysis for swing trading we'll be talking about charting time frames indicators and supply and demand key levels let's start with the most important aspect charting time frame in trading time frame of a chart refers to a length of time that the trend is presented in a market it is used by both day Traders and swing traders to analyze price movements and make decisions based on their trading Styles and strategies so in day trading most Traders will use smaller time frames such as the 1 minute chart or the five minute chart but in swing trading the lowest time frame most Traders use is the daily chart then the weekly chart and sometimes even the monthly chart if you think about it this makes a lot of sense you're holding positions for days weeks or even months instead of a couple of minutes so you shouldn't let every single tick on smaller time frames distract you from the bigger picture and that's why the daily chart which you can see up here this is a default for most swing Traders this is the chart I use the most as well as the weekly chart that you can see over here I only use smaller time frames such as the 5 minute charts or the 15 minute charts that you can see here to execute my orders next let's talk about the concept of supply and demand this is a very important aspect of technical analysis to understand especially if you're doing technical swing trading which is the kind of strategy I'll be sharing with you later in the video on the daily chart over here you can see we have the stock Google have you heard of them you can see backing around like what June of uh last year the stock peaked around this 190s area and pull back all the way down to this area let's call it one 168 165s here and then bounced off and went even lower to 155 then down here to let's call it 149 at each of the lines that we just drawn you can see that the stock after selling off from these levels it kind of bounced off that area multiple times you can see here it bounced off this 164s went back up to 173s and went even lower to 155s came back up to 160 you know 5S area and sold off to 150s and after that bouncing over back to the levels of 165s again and the reason the stock bounced at these Green Line these areas because they were buyers there waiting to buy the stock there is demand there which is why these areas are called demand zone or support Zone in general these are areas of interest for buyers and these are the areas where you should look for your potential swing trading entries now back to the Chart here you can see that after the stock bounced off these green lines it went all the way back up to the 174s area after it bounced here it went back to 164s 150s back to 164s then it went back to highs over here around 180s then again after it bounced off this support area went back to New highs around the 190s which talked about and even 200 up here and after the stock Peaks at these red lines areas it pulled back meaning that after hitting those levels you can see the stock go back down lower sometimes even selling off drastically you can see that will be the example here after hitting this 181s it sold off drastically back down and 20 points lower same thing here after it hit 200 it pulled all the way back down to 188 and the reason the stock pulls back at these red lines that you see here on the screen is because there were sellers there waiting to sell the stock and get rid of it there is Supply that's why these areas are called Supply zones or resistance basically the opposite of demand or support these resistance areas are where you should look for potential exit to sell and take profit on your swing trading positions I do want to make one thing clear though these support and resistance lines are not just some magical line that the stock candles just bounce off for no reason these lines or zones represent significant price levels that people have historically agreed to sell or to buy so we must make sure to chart these areas out because it's likely that it will happen again but it's never guaranteed next let's talk about indicators on the daily chart and I will will specifically be speaking about indicators that I use for swing trading before we continue if you're enjoying this very comprehensive video guide on swing trading so far please remember to drop a like down below so even more people interested in swing trading will see this video and I really appreciate it okay now continuing with indicators first of all indicators are very subjective every swing Trader uses different pairs of indicators for me I use the daily SMA here which is the purple line you see on the daily chart the simple moving average as well as the 8 EMA which is this orange line that you see that's a lot shorter this is the 8 EMA exponential moving average and on top of this pair of indicators I of course use volume which is the volume bar you can see at the bottom over here okay let me talk about each of these indicators I use in details here and break it down to you why I like to use them so that start with the 8 EMA again that's the Orange Line you see over here 8 EMA is a momentum indicator I use it to see if a stock is currently uptrending in a breakout or consolidating for either a move up or down for example you can see this stock R GTI it's been breaking out and riding and shooting up along this Atma this very strong momentum another example over here you can see the stock is breaking out pull back consolidate and break out higher along this uptrend on the 8 EMA I will explain even more about these chart patterns in the next section of the video but for now you just need to know that you can use this 8 EMA to write momentum on your swing trades to the upside the next indicator we'll talk about is 200 SMA simple moving average which is the the purple one that you can see over here the purple line here that's the 200 SMA the 200 SMA is a key indic Ator used by Traders and Market analysts to determine the long-term direction of a stock like the number suggests 200 SMA it's a very long-term moving average this line you see this purple line essentially calculates the average of the stock price over the last 200 days and why do you need to know this as a swing Trader in general stocks below 200 SMA is considered weak and not ideal for swing trading or investing on the long side and vice versa stocks above the 200 SMA is considered bullish and more ideal for swing trading or investing again this is all just technicals of course we're not talking about fundamentals and because of this very general concept I do not swing trade stocks below the 200 SMA or at least not with the strategy that I'll be teaching you today okay let's talk about the third indicator this is pretty universally used for most day Traders and swing Traders Traders and that is volume this is the volume indicator here down here below the volume indicator shows you A visual representation of how many shares of a stock is traded in a single time period so at the bottom volume bar here you can see the volume for each of these daily candles so you can see on this day the stock Goog Google stocks traded 97 million shares and on these lower days it traded only about 52 million million volume is an important indicator I Ed it help with entering my swim positions as well as exiting for a loss or take profit we'll go through the details with actual examples in the next section okay let's talk about chart patterns shall we this is often a very highly debated Topic at least in day trading and often quite skeptical about all these chart patterns that you see here that you can memorize and print out on the internet when they are used for intraday in day trading just like technical analysis chart patterns are subjective but for swing trading large cap stocks specifically I actually really enjoy using them not because these patterns work 100% of the time again nothing in trading is ever guaranteed but because I've seen these daily chart patterns for swing trading repeat again and again in the past for large cap stocks the reason for that is because when you're swing trading the charts are a little bit more forgiving and you have the luxury of time to let the trade work out and show you whether the pattern or the setup you have in mind is indeed working out or setting up as you had expected so in general there are three chart patterns that I want to share with you today and these are especially important if you want to become a swing Trader the first chart pattern is the breakout pattern this is an important one so pay attention this breakout chart pattern is a foundation of the Swing trading strategy that we're covering in this video again this is my favorite strategy so let's talk about what is a breakout a breakout is a price action that occurs when a stock is breaking through a daily resistance now you can see that we're starting to tie all the technical analysis Concepts we learned earlier so let's take a look at this Tesla chart now on the daily chart you can see that on the daily chart there's some significant resistance here so that's draw all the resistance as you learn how to do so earlier around this 165 you can see another resistance here tested once and twice around here 158 okay let's just use these two for now so you can see at both of these resistance the stock tested many times that 165 area once here another time here one more time here and once it gets finally gets above those resistance that has tested previous previous times it finally explodes remember a breakout is only strong if a stock has already tested that resistance a couple of times before usually at least two or three times one more time here you can see the stock tested that 159 area here one around November of last year one more time again couple weeks later and one more time here and boom once it breaks out the breakout here is explosive through that key resistance level and you might be able to tell by now just from the screen sharing demo here why this is my favorite chart pattern for swing trading once a stock breaks out of a multi-week or multi-month resistance it can continue going for multiple days just like Tesla here from 158 all the way to 483 that's more than 100 points per share so let's take a look at some of the examples of a breakout um peners another one over here you can see once it broke through that resistance here at 44s there's no going back and there's another example here you can see some resistance here around this area here it's tested that once twice three more times and then it breaks out and goes a lot higher one more you can see this is a crazy mover last year MST once it gets through these long-term resistance this is a multi-month resistance here here here and one more time here around October or November then you has a huge breakout uh from 178 all the way to $500 we will return to these breakout charts later when I share with you the swing trading strategy so make sure you remember these okay now let's talk about the second chart pattern which is the opposite of a breakout breakdown so just like we talked about earlier a breakout is when a stock breaks through a key resistance then that means a breakdown is when a stock breaks down and breaks below a key support So if you take a look at this djt over here you can see some resistance around here the stock bounced off this area here here and here you can see once it broke down that area here 32s it actually broke down a couple of times here here one more time and this is the fourth time of a breakdown once that breaks down it sold off all the way from 33s down to $12 so that's another example of a breakdown um another one I think uh AMD has some good breakdown examples you can see back here once it broke through these support areas here here each time once it broke through this long-term support here it sold off to the next level down 153s when that once that breaks down one more time it sold off to the lower level support at 130s and 120s the next chart pattern is consolidation chart pattern consolidation is when a stock is trading within a tight range for a period of time for days or weeks consolidation chart pattern is important to identify because it usually leads to powerful breakouts or breakdowns so let me show you an example here you can see this AMD chart before it had a breakout here from 183s to 220s over here it was trading sideways for a while in this range in this range over here this what we call a consolidation it went up to 180s pull back down to 163's back to that same area tested it many times this is a span of you know at least a month actually in this consolidation the stock usually needs to consolidate before a major breakout another example here you can see a smaller and not as you know apparent consolidation area you can see the stock had to trade around this range here for a while until it break out once that fails it sells off going back to a Tesla example we had earlier you saw this uh explosive breakout here then that's because that's a result of a consolidation of a stock testing the same resistance and support for a while this is for a couple of weeks here from mid November to mid December before it was able to break out you can see not every stock needs to consolidate to break out or break down but sometimes these consolidation areas will provide us swing Traders really good entries to get in so you can position yourself with the correct risk reward before the stock actually breaks out quick reminder I share a lot of trade ideas for both swing trading and day trading and talk about all these daily charts patterns that you just learned I share them in my free weekend watch list in which you can sign up for free down below all right now let's talk about swing trading brokers and tools that I personally found very use useful I think it's a general good practice to keep your swing trading account separate from your day trading account this way you don't get itchy fingers and take profits too early on your swing trades when you are day trading the same ticker or having a bad day in day trading because that's happened to me many times before the Brokers I like to use for swing trading are Centerpoint Securities and interactive brokers I'll leave links to any sign up promotions down below I actually really like the mobile app for interactive brokers I often times just execute my entries or take profit while being on the phone they also allow you to use OC orders or bracket orders on the mobile app which is very convenient and allows you to manage your day trades or swing trades very easily I use both interactive brokers and Centerpoint Securities to execute the swing trading strategy that we'll cover in the next section other Brokers that you can also check out and consider are Weeble they also have really good mobile interface and the desktop is pretty friendly as well to beginners and they're commission free only in the US for charting wise I recommend using trading view I use them for all the demos you see in this video okay let's talk about the exciting part that you've all been waiting for my favorite and very simple technical breakout strategy for swing trading there's a three-step process to the swing strategy step number one which is finding stocks to swing trade okay let's cover this now this is a very important aspect before we go to the entries and exit portion of the strategy I always use a scanner to find stocks that fit my swing trading criteria during the middle of the day after 12:00 p.m. eastern time this is perhaps the biggest difference in terms of my stock scanning process between day trading and swing trading for day trading I usually scan for stocks to trade during premarket hours but for swing trading though I will have this swing trading scanner that you see on the screen over here I'll have this on during the middle of the day after 11:00 a.m. Market time an idea for this scan template is very simple I'm simply looking for stocks large cap stocks that have already started gaining volume and momentum earlier in the day and I want to get in for even more follow through during the breakout move on the daily chart so to do that you can see here opening up the templates here I'm looking for stocks greater than a dollar per share I'm looking for stocks greater than 1 billion market cap again I don't like to trade penny stocks or small caps for swing trading it's too much gamble you either wake up broke or you wake up rich and I always wake up broke for volume I want to see at least 500k for the middle of the day and I want to see that the stock has already moved up at this positive on the day 3% and you can see once you update the set here in a scanning template it shows me a bunch of different ideas that fit the criteria I had inputed this is a stock scanner I help develop in order to fit my trading strategies and my Styles all the settings I mentioned earlier is basically in this midday movers for large cap swings template so every time I'm scanning for swing ideas I just click this during the middle of the day and the scanner will show me a list of potential swing trading ideas for example you can see this top idea here oo I know the stock is about to break out just from looking at the chart you can see it's testing that daily resistance once it breaks out you'll be prime for another move to the upside okay once you have this list of potential ideas you're ready to move on to step number two step number two Technical and chart pattern analysis so it's time to bring in a lot of things that you learned earlier the daily breakout chart patterns and the technical indicators the hdma and 200 SMA so from the list of ideas that you saw earlier you want to go through the list like I did with OKO earlier and see how the stock is reacting to those two EMA pairs so you want to see how they are reacting to the 200 SMA and the 8 EMA so and what I'm looking for generally speaking is I want to see if a stock is hugging and trending along that orange line here the 8 EMA or if they had recently broken down like you can see on this test that chart here if it broke down I want to see if the stock has a history of reclaiming above that 8 EMA again so let's take a look at the oako chart that we saw earlier you can see this oako chart had the history of breaking out along the Atma bouncing off it even while it broke down of the Atma it was able to reclaim this many times once twice three times and now it's attempting to break out again so that's good that's something you want to see for the potential trade idea now where does the 200 SMA Comm in this is another filter that qualifies the swing candidates remember I wouldn't recommend swing trading stocks that under the 200 SMA even if they are hugging and breaking out along that eight EMA so you can see OKO is well above the 200 SMA that's fine but this AMD here this is the example earlier you can see this is not so I wouldn't recommend this idea another one is Google this is a recent idea that I picked up from the scanner a couple weeks ago once you can see the stock is well trending above the 200 smma reclaiming that Atma after the breakout and it's starting to consolidate we talked about the daily consolidation chart pattern here you can see it's starting to do that here so this is another idea I have for consolidation along the Atma for a breakout above that resistance some of these tickers that you find on the scanner may not be the perfect stock to take for this technical swing trading strategy right away but you should always keep them on a watch lless they might not be ready for the day you found them but they can set up a few days later or a few weeks later for a breakout remember what we mentioned earlier swing trading is about taking very few and very selective trades you want quality not quantity step number three executions entries and exits okay so we talked about the criteria earlier the stock has to be broken out of a daily resistance in an uptrend along the 8 EMA and have a history of reclaiming that 8 EMA and big picture wise it needs to be above that 200 SMA so let's talk about entries once the stock has proven to be riding along the Atma after a breakout my ideal entry is as close to the adma trend as possible so if you take a look at this Google example here you can see that previous resist resistance is this area here around 19s and you can see it has been riding along and breaking out of that Atma so if you get rid of that consolidation area here that we're seeing then I want to get in as close to that 8 EMA as possible again remember we are swing trading not day trading you not looking for position or entries precisely to the scent you're just making sure that your overall trend and direction is enough for you to capture the breakout move so obviously you want to get in as close to atem as possible and ideally not on these at Ma breakout around 200 like I would wait for it to pull back closer to 190s or even right below the 8 EMA so if you look at this Tesla example here you're looking to get in along these eight EMA consolidation areas here around 330s 3 40s and as for exit you're looking to sell into any major EMA breakouts hopefully for a profit so you can see like for this one you want see right along the Atma once it starts pulling away from that orange line like here and here again and here especially that's when you should take your profit I usually like to sell my swim positions in partial sizes in quarters actually so I'll sell 1/4 into the breakout another 1/4 and keep at least half to continue trailing along the ATM and once I've taken partial profit the stop has moved up to break even and as for the stops will be below 8 EMA if a stock closes below the Atma like this candle here that's when I would be stopped out as you can see this technical swing trading strategy is very simple requires only two including volume three in the ators and the entry and exit is extremely simple this is the way I see swing trading it's a lot less complex than day trading and the charts overall is more forgiving and you have a lot more room and time to let the trade work if you have any questions regarding technical analysis for swing trading chart patterns swing trading brokers or just my swing trading strategy overall feel free to ask me down below and again you can sign up to my free weekend watch list if you want want to see my trade ideas for both day trading and swing trading if you enjoy this free video course on swing trading then you should check out my swing trading strategy breakdown in which I made over $100,000 on Nvidia in a swing trade all the details will be over here