Home > Market Set Up > swing trading: getting ready to short

swing trading: getting ready to short

Whether you are day trading or swing trading right now, you have to love this volatility. The extreme moves we are experiencing in both directions is perfect for short term trading. The market the last few weeks has been following a similar pattern on a daily basis, chop around the first 45 minutes find a bias and kick in the turbo boosters after 2:30.

This stock trading environment is heaven for traders who have experience and a plan. The traders who I can see on the floor of our NYC desk that are very frustrated are traders who don’t have a plan or a structure for price action. They view this volatility as “unreadable.” If you want ot join the ranks of experienced traders, sit down and write out a plan, have an idea of what price “should” look like so that when it presents itself, no matter how fast the moves, you will be prepared.

That being said, The 283 2.2% up move we had in the Dow yesterday is setting up a shorting opportunity for me. I will be looking for some follow through in price action to the upside today and maybe tomorrow. Once the upward momentum has subside I will look for sellers to take control again and join them on the short side.


Categories: Market Set Up
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