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Track 'n Trade Bulls 'n Bears Trading System

Swing Trading Methods

Video Transcript

In this Track 'n Trade training video, I want to cover Swing Trading. What exactly is Swing Trading? Everyone is familiar with the idea that if we get a Buy signal, we enter the market with a long position. Then when we receive our Sell signal, we exit the market and take our profits. Of course, when using a Margin account, we also have the ability of going short, or entering the market when we get a Sell signal, then exiting the market when we get the opposing Buy signal. Once again, exiting our position with a profit. Now, if we combine these two trading strategies, go long when we get a Buy signal, and go short when we get a Sell signal, we in essence have created ourselves a trading style known as, "Swing Trading."

Swing Trading is when a trader never exits the market, but maintains a position, either long or short, depending on the signals generated by a specially designed Indicator. This type of Indicators sole purpose is to provide an opposing Sell signal for every Buy signal.

It's the key feature that gives the trader the ability to actually Swing Trade.

In nicely trending markets this strategy can be one of the single most profitable strategies known to man. Anything other than nicely trending markets, such as a sideways market, this is where we get chewed up and spit out.

Remember: Where systems fail, methods prevail.

One of the most powerful features of the Bulls 'n Bears tool is that it's a multifaceted Indicator. Which has both the abilities to be a trend following, trading methodology, but it also employs a special characteristics of a Swing Trade Indicator. In essence giving you cake and letting you eat it too.

I really want to emphasize this one important point. There are very few Indicators that actually designed, with the sole purpose of providing an opposing Sell signal for every Buy signal. Which is what gives us the ability to Swing Trade.

Here's a couple of examples of what I'm talking about:

This is the Stochastics Indicator. Probably one of the most popular Indicators ever invented. But notice, it's not designed as a Swing Trading Indicator. It gives multiple Buy signals in a row, and multiple Sell signals in a row.

Here's another one, this is the CCI Indicator.

Here's the RSI. Again, notice that we have multiple Buy signals in a row, and multiple Sell signals in a row. These Indicators were designed with a different purpose in mind. Remember, not all Indicators were built with the same purpose in mind.

Okay, take one more look at the Bulls 'n Bears, notice that we only receive one Sell signal for every Buy signal.

This gives us the ability, if we so choose, to Swing Trade the Bulls 'n Bears as a system.