Securities Research Services

Wednesday, October 13, 2010

A Swing Trading Stop Loss Strategy That Will Keep Your Accounts Growing

What if we told you that a swing trader who picks the right stock just 55%-65% can be hugely successful?  That is, if just one out of every two of your swing trades earn money then you can make a lot of money over time.  However, it is also possible to be right 80% or even 90% of the time and still go broke.  All it takes is one or two big losses to wipe out all of your hard-earned gains.  The difference between a successful swing trader and a failed swing trader has as much to do with how risk is managed as it does in making good stock picks.

In fact, a good swing trade money management, or stop loss strategy is just as important as picking the right stocks.


No comments: