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Swing Trading Swing Trading can be describe as taking advantage of brief price swings in stocks lasting anywhere from one day to a month and using market research to determine entry and exit points of those stocks. Many times, stocks will trade in a defined trading range, normally in
a 5 to 8 point range. This range may last for several weeks. Our goal in these stock trades is not to find the exact lows, but to identify the stocks that are near the bottom of their range and oversold. With
these setups, we will have a high probability of capturing a rise in the stock price over a short period of time. This may be from a few days to a couple of months. Once again, we have a couple of ways to play these stocks. We may just buy and
sell the stock without using call options, or if there are options traded on the stock, if the current month option has a high premium, we may sell "out of the
money" calls, capture the call premium and hopefully have the stock called away from us upon the expiration date of the options. If the stock does not reach the
strike price and the options expire worthless, we will after the expiration of the options make one of two decisions, either sell the stock and close the position or
sell the next month's options and take another call premium. If this information sound apealing, Sign Up for our
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