I've been learning swing trading and could use some guidance because I feel like I'm going in circles.
My preference is:
* Swing trading only
* Long positions only
* Holding period: around 2–3 weeks
* Prefer trading with the trend
* Starting capital: $5,000
I've been paper trading for a while, but I'm not happy with the results. I feel like I'm missing something in my process.
My stock screener is usually:
* Price: $5–100
* Market Cap: > $2B
* EMA 21 > EMA 50 > EMA 200
* Price > EMA 50 ( this helps in finding dips)
* Average Volume (60D): > 750K
* ATR(14 days) 3%-5%
* RSI(14)>45
This typically narrows the universe down to about 150 stocks that are in established uptrends.
Sometimes I also add filters like:
* 3-month performance > 3-5% and earning date in next 15 days. - This is with assumption that since the last Quarter was good, the stock price may rise up after the earning date. i sometimes add 6 months performance 3-5% as well.
For entries, I often look for:
* Support resistance on 1M, 1W then 1D
* MACD bullish crossover
* Price crossing EMA 21 in upward direction
* and few more personalized indicators
For overall market context, I use Finviz Groups to identify the top 3 performing sectors over the past month, week, and day, then look at the top 5 stocks within those sectors.
Even with all of this, I don't feel like I have a real edge. I suspect I'm either screening incorrectly or focusing on the wrong factors.
For those of you who consistently make money swing trading:
* Does this seem like a reasonable workflow?
* What important filters or concepts am I missing?
* Are there better ways to narrow down high-probability setups?
I'd appreciate any advice or constructive criticism.