Swing trade of the week


A part of successful stock trading is being disciplined. It is much easier to be consistent when you have structure to what you are trying to do. Having the discipline to do your homework every day at the same time without fail is a must for any aspiring trader.

Every night I scan roughly 400-500 stocks for swing trades, if something really lines up, I may trade it intra day. When I tell this to new traders, many of them react by saying that sounds like alot of work to do every night. Well I think that depends on what perspective you are viewing the work from. I feel when I sit down an begin my scans that I am on a treasure hunt. I am looking for money. If that doesn’t excite you, go find a job. I am not interested in a job, a trader is an entrepreneur. A trader is someone who is willing to take a calculated risk for the rewards available.

If you are a trader who only thinks about trading during market hours you don’t have a shot to do this long term. However, if you are willing to spend some time at home after hours working on your business, you have what it takes. I once read a great quote that is always pushing me to improve, “how you spend your spare time will dictate how you spend your future.”

On to this swing trade, this is not technically a test book downtrend. The part that caught my eye doing my scan was the huge volume spike on the large range candle last week. The stock (IBM) has consolidated since that move. I am going to take a swing trade short @$102.15 with a trailing stop just over $104. If the most recent support level of this consolidation is broken with some volume, the next area of support is $97, just around where it gapped up.


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