in swing trade do i look at fundamentals of the company or just look at the indicators like macd, rsi, stockastic and support.
how do i use ema amd ma in swing trade.
Trading indicators are best used along with money management and good risk control, using tesnical indicators alone will not enable you to ne a successful trader, the market is just too random
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In swing trading like in day trading fundamentals are completely ignored. You want fast moving, volatile stocks, that give you as much bang for your buch as possible.
Here is more or less what I do for day trading.
I keep a list of volatile (in terms of Average True Range) and trending (Momentum) stocks. I don’t trade the first 45-60 minutes, but give the 5day intraday charts of the stocks a look over. I concentrate on a small number of them.
What I trade are intraday breakouts in the direction of the trend (stock and market), using 1.5-2% stops under the most recent dips. I rarely have more then three or four trades running at the time. I close out 30-60 minutes before closing time, and also when I’ve reached profit or loss
targets for the day.
In these volatile times, things go pretty well, although I opened the stops, somewhat.
judging by your question you are just starting out. every indicator has its own adherents. generally speaking you have oversold/overbought or trend setting indicators. start with one indicator and see if you can successfully determine market direction with it. then paper trade for a while and determine how much your profits would be using that indicator. if your profits are not high enough then you may need to add another indicator or maybe change the way you use your indicator or maybe try a completely different indicator. when you have confidence in your methods start trading real money. remember you must make enough on your winning trades to cover your losses when you hit a poor spell. starting out don’t use more than 2 indicators. and remember each indicator can be used many ways by successful traders.
most traders will tell you to ignore fundamentals but that is not correct either. i use fundamentals to gauge the direction the market should be moving and also to see how strong a reaction the market gets from data.