Online Trading

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Penny Stock Swing Trading

As part of our Penny Stock Investing Strategy Center, this page will explore Swing Trading. We will define swing trading, explain its use, and show you its pros and cons when working with penny stocks. Please be sure to check out our other trading strategy pages. With our help you will be on course to finding your niche in penny stock trading!

Day Trading

Swing Trading

Momentum Trading

Technical Trading



What is Swing Trading?

Investors take part in swing trading by searching for stocks that have huge potential to move in a relatively short time period. This can typically range from less than one day, to four days long. This strategy is mainly used by day traders and those who trade at-home. Swing traders use technical analysis to look for stocks with short-term price momentum. These traders aren't interested in the fundamental or intrinsic value of stocks, but rather in their price trends and patterns.

Trading Course

In a market that is perfect to swing trade stocks, the stocks tend to trade above and below a baseline value, or in other words, a moving average or exponential moving average (MA/EMA). Typically penny stocks will use MA’s as both support and resistance levels. By experimenting with charts, a set of moving averages can be fit to a stock’s price action, and be used to help with trading decisions. An educated trader would know to buy close to a bottom level MA and sell before the top level, or target MA. Some profits may be left on the table, but the trader will cut his risks down significantly.  For additional reading, please check out “Come Into My Trading Room: A Complete Guide To Trading" by Dr. Alexander Elder. This book is great for those beginning to trade. Also, check out our pages Technical and Momentum Trading to augment your swing trading strategy.

Swing Trading Pros:

  • Swing trading is a great trading style for beginners to get their feet wet in the market, while profits can still be made.
  • Although home runs are not usually made with swing trading, if a penny stock investor catches the start of a new uptrend, profits could be huge.
  • The basics of swing trading can be applied to almost any instrument, not just penny stocks. You can use the strategy to trade Forex, FXCM, futures, or big board stocks.

Swing Trading Cons:

  • It’s tough to find a perfect market where the stock will trade between its support and resistance levels. The story gets complicated when a stronger uptrend or downtrend is at play.
  • With penny stocks, it’s still difficult to time your buys correctly and if you get caught with a stock while going through dilution, your best bet is to wait until dilution ends.

Swing Trading Resources:


The Definitive Guide To Swing Trading. The #1 Swing Trading Course Online.

Swing Trading, A Scientific Approach. Learn How To Apply Science To Trading Stocks. The Entire Universe Is Governed By Science, The Markets Are No Exception!

Trading Pattern. Fake And Break Stock Trading Pattern For Stock Traders.

The Definitive Guide to Swing Trading

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