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From: dabum37/13/2005 5:49:36 PM
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The Basics of Swing Trading .......................................

As most of you know, I prefer to trade in a short term time frame. This time frame is often referred to as a Swing trade.

Swing trading, as described by Charles Dow back in 1908, was to "deal in active markets making many trades, and relying on stop loss orders for protection."

Swing trading attempts to capture trading opportunities on both the long and short side, regardless of what the underlying long term trend is.

"The main goal of each trade is to minimize risk rather than maximize profit." We can't predict the future, so we try to get a head start in the right direction by climbing on board the stock after the price is heading in our direction.

Swing trading depends on not giving up profits. Trades should be exited either in the direction of price movement or just as the price reverses. Trailing stops will lock in any profits.

dabum
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