Keep Swing Trading Profits

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Keep Swing Trading Profits

How To Keep Your Profits In Swing Trading

With so many stock moves every single day, it can get hard to track all of them or even to take action at the right time. Then there are times when you sell a stock for profit only to wish that you had held it longer for more profits. If you find yourself in a situation like this, then that's an indication that you need a rules-based strategy to contain your emotions.

Example - Autohome Stock

If we look at the ATHM stock, the most relevant action is the recent breakout. During the month of March, this internet stock from China underwent a 15% correction but rebounded at the 200-day MA dynamic support. After taking a pause, Autohome stock formed the cup formation.

In case you do not know, this cup formation presented the perfect opportunity to take a quick swing trade. After March 29, almost all the technical indicators started pointing towards bullish momentum, such as RSI, trading Volume, and so on. If you had taken that swing trade in Autohome, you would have easily hit the 5% profit goal.

One of the tricks you can use in your trading is to move the stop loss 1% above the entry price. What this tactic does is to make your trades practically risk-free in case the price comes falling down!

How To Set Profit Targets

One of the biggest dilemmas faced by most traders is how to set profit targets. And the solution is that there are no right or wrong answers. In order to stay consistent with your swing trading, you need to have a system in place that dictates when to enter and when to exit.

Sure there are times when the stocks end up making new highs while you only take small profits. But then there are also times when the stocks take a U-turn right after you have sold your position. So in a sense, you have to keep all of these things in mind when making trading decisions!

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