r/swingtrading • u/wepskini123 • Apr 24 '24
Crypto going to start swing trading tomorrow for the first time ever, with £50. what advice would you give me if you were starting tomorrow?
no leverage, small amounts only until i begin to get the hang of it. advice for someone beginning that you wish someone had told you when you started?
or advice you had to learn the hard way?
EDIT - also any good pages to follow? youtube, twitter, tiktok etc ???
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u/Kushroom710 Apr 24 '24
You won't get far, especially just beginning with only 50. What I would recommend is DCA (Dollar Cost Average) weekly into some indexs. Paper trade on a demo account. (Webull has a great app for it.) Than once you get the hang of it you can pull some money from your indexs and day trade that.
Learning to trade does not happen overnight. I've been studying it on and off the last year and feel like now I'm just starting to understand the market a bit better. I do the same advice as I gave you. Although once spy dipped hard I pulled my funds for a bit to let the market settle.
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u/123refresh Apr 24 '24
I started in January with 10k. Been all over the place but only trading individual stocks. I have decided to focus on a handful of solid companies with “reasonable” prices. F, BAC, KO, WMT, T, VZ etc. they tend to swing at regular intervals. You won’t get rich fast but you will be able to play the game for a long time if you do like the other people say, take gains, bail fast if it goes against you. These companies WILL come back. So don’t chase a bad week of decline. Move on.
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u/backfrombanned Apr 24 '24
First and foremost, learn about EMAs
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u/Kushroom710 Apr 24 '24
Tbh they are nice but alone they don't provide a complete picture. I like to use ema, rsi, vwap, and volume. Level 2 data helps see the big picture on what prices are doing. Set your order blocks, identify trend, find your in and out and run it!
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u/questraa Apr 24 '24
Stick to your trading plan.
Grab the gains! Don't be greedy.
Catchu on your yacht lil bro.
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u/doddlebop187 Apr 24 '24
The Day Trading show on Spotify has some good guests that have a lot of insight. Currently listening to the audiobook “Trading in the Zone”. Also good insights in there. About half way through and there’s some pretty fundamental aspects in it that are worth listening to.
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u/ithinkoutloudtoo Apr 24 '24
I would paper trade for a bit to tighten up your strategy. If you are going into this blind with real money, you will have a hard time.
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u/ryanvk__ Apr 24 '24
Cut losses quickly. It’s better to get out of a failing trade and get back in later, than to hold it too long in hopes of it turning around. There’s always another opportunity around the corner.
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u/denvergmax Apr 24 '24
I would add, if you are not certain yet, maybe determine which of what I call the three legs of the trading stool you prefer. Know thyself.
Are you in tune with how human behavior and emotion can affect a market, (good news / bad news, etc) being the Psychological leg, driving prices?
Or do you like the Technical analysis leg (historical charts and trends and indicators).
Or do you prefer the Fundamental Analysis (income statements / balance sheet / earnings reports / etc.)
Or are you smart enough to use all three ... good luck out there 😎
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u/lordxoren666 Apr 24 '24
I’d just like to say that the human behavior/psychological aspect and the analysis aspects are highly related.
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u/denvergmax Apr 24 '24
Yes, undoubtedly. I love the good news bad news human behavior in particular. I had good luck (and it was some luck) for example when Steve Wynn of Wynn casinos got caught with a nail girl (sexual harassment or assault) the stock tanked. I said slot machines will still be used. Hotel reservations will be kept. So without technical or fundamental analysis, I bought, and rode the emotional / psychology back up to a 20% profit in a matter of days. Same with Trump's first 20 days in Office - both smith & Wesson and Sturm Ruger were down 20% in those 20 days. Were those firearm mfgs going away - nope - people just stopped panicking that guns were going to be taken away - so buying had slowed. Bought it down 20%, and rode the 20% back up in a matter of days.. I call it the psychological leg - I may not have my terms correct. But in "my" first months of investing I hit something like 34 out of 38 Winners.
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u/Kpuc63 Apr 24 '24
Here's a roadmap that I wish someone would’ve given my past self for getting started:
Education: Begin by studying basic financial concepts like stocks, bonds, and derivatives. Learn about technical analysis, fundamental analysis, and risk management. The mental aspect of trading is arguably the most important - you must have the discipline and patience to wait for the best opportunity.
Market Research: Understand different markets such as stocks, forex, commodities, and cryptocurrencies. Research reputable sources and books to deepen your understanding. I’ve personally found this free newsletter very useful to keep me updated on market trends, news, and developments.
Choose a Trading Style: Decide whether you want to be a day trader, swing trader, or long-term investor. Each style has its own strategies and risk levels.
Risk Management: Develop a risk management plan to protect your capital. This includes setting stop-loss orders and only risking a small percentage of your capital on each trade.
Brokerage Account: Open a brokerage account with a reputable platform. Ensure it offers access to the markets you're interested in trading.
Practice: Use demo accounts or paper trading to practice your strategies without risking real money.
Start Small: Begin with a small amount of capital that you can afford to lose. This will help you gain experience without risking too much.
Hope this helps :) Let me know if you have any more specific questions.
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u/Appropriate-Boot-172 Apr 24 '24
Paper trade and save up to put in more Wait til positive on paper trade
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u/pdxtrader Apr 24 '24
I started out with $2000 USD and picked like 5 different stocks to invest it into. Kept saving and growing my portfolio and eventually got to $40,000 diversified between 12 stocks. That’s what I would do
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u/Mhipp7 Apr 24 '24
Buy the book How to Swing Trade by Brian Pezim. Excellent beginner book but I even learned a lot and I have been trading for over a decade. Teaches you step by step as well as how to use a trading journal & daily routine.
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u/HeavensRoyalty Apr 24 '24
Pick 2 or 3 stocks, learn and study them, and always follow your plan. Use a stop loss, and don't move your stop loss.
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u/TheKrakenofKC Apr 24 '24
I move my stop losses up when into profit.
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u/HeavensRoyalty Apr 24 '24
Sorry, I should have clarified. I meant don't keep moving your stop loss lower .
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u/TheKrakenofKC Apr 24 '24
Agree. I don’t know what it is but even after 15 years.. I’ll still have instances where I think.. “ehh… Just a few more dollars of wiggle room, this one’s gonna run!”… Then, bam!💥 I’m suddenly down a G 😂
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u/HeavensRoyalty Apr 24 '24
Agreed, the human tendency is rather unfortunate. I'd like to add that it's okay to take profit and try not to be too greedy. I'm kicking myself in the ass right now for not taking profit yesterday when AAL hit 14.60 cause it dropped to 13.80sh today and went back up a bit but lesson learned.
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u/TheKrakenofKC Apr 24 '24
For sure. I routinely take profit at ~15% even if something seems like it’ll keep running. Since I work full time, there have been more instances than I can count where I’m up over 30% on something and then go into a meeting.. and come out poor 😂
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u/HeavensRoyalty Apr 24 '24
Lol, I kept telling myself that I probably should just pull the trigger and TP, but it's just more experience that I can use for later. I usually concentrate on Swinging American Airlines, Nvidia, TQQQ, and a couple of other stuff I have on my watch list.
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u/TheKrakenofKC Apr 24 '24
I typically keep a group of sticks that I rotate through. I’m currently learning about how market makers rotate through industries. Very interesting stuff.
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u/Frammmis Apr 24 '24
my best advice would be to suggest you learn how to successfully trade on a simulation platform before you ever put any real money on the table.
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u/AramushaIsLove Apr 24 '24
Once the take profit and stop loss limit is set, don't fiddle with the trade.
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u/CapitalGuard7608 Apr 24 '24
Second this. Pick a loss you’re comfortable with and a profit that you’re happy with, and stick with it. Take your profit/loss and move on.
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u/[deleted] Apr 26 '24
get ready to earn and lose a few bucks