How to Swing Trade Stocks (THE BASICS)
Video Summary
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A brokerage account challenge is being undertaken by the author, starting with an initial investment of $25,000 and aiming to double it by the end of the year through swing trading. Swing trading involves making a position and holding it for a short period of time, usually a few days or weeks, to profit from price movements. The author will be focusing on selling put options and swing trading, bypassing day trading due to time constraints. Fundamentals of swing trading include analyzing the book value of a company, technical analysis (using candlesticks, charts, and SMAs), and qualitative analysis (evaluating news, company trends, and future prospects). The author will be using a combination of these tools to identify potential trades and set a game plan for each position, including entry, exit, and position sizing. The video covers various newsworthy events that can drive stock prices, such as stock buybacks, dividend offers, and mergers. The author emphasizes the importance of understanding technical indicators like MACD and RSI in swing trading and will be covering them in more detail in future videos.