Swing trading checklist – easy way to start swing trading

In the last few years, swing trading has gained enormous popularity in the stock market. As one of the most profitable strategies, it is not surprising that there is a huge interest in something called swing trading check boxes, that is, what is needed to succeed in this strategy.

First of all, whether you are an experienced trader or have just stepped into the dynamic stock market, the swing trading checklist you will create will help you achieve the desired results and profits more effectively. Practicing this strategy certainly increases the chance that your stock trading will reach a new level.

But before we explain how a swing trader can create the ideal swing trading checklist, let’s explain what swing trading actually is in the first place, shall we?

What is swing trading in the stock market?

Swing trading represents one particular type of fundamental trading in which positions in the stock market have been held for more than 24 hours, i.e., one day. Swing traders with this strategy aim to capture profits that are usually short-term by the proper technical analysis to do the following: 

• Enter into positions
• Hold for weeks or days
• Exit very quickly afterward.

The style of this type of trading is something between trend and day trading. In swing trading, traders may expect results in short to medium-hold periods. Per one single transaction, profit is slightly higher than day trading. However, it’s lower than trend trading in general. 

A great number of fundamentalists are known to be swing traders. It is due to numerous novelties in corporate fundamentals that usually need a short time to cause adequate price movement to provide rational profits. 

What is the key to success for swing trading? 

For Newbie swing traders, before writing down their swing trading checklist, it’s crucial to understand what is the key to success. Short answer: picking the right stocks. It means that traders are able to choose between two key things in the first place: volatility and liquidity. 

Remember that the best ones so far are considered to be large-cap stocks. According to expert traders, these stocks are actively traded on huge exchanges. In an active market, these stocks will have high transaction volume. If there’s insufficient action or liquidity in the stock, it will be much more challenging to sell.

Volatility can be a positive thing. 

Volatility could be a positive thing. If there isn’t a price movement, there aren’t any chances for acquiring profits. Even though volatility has always been a synonym for something negative, as a swing trader, you may consider it very positive. 

It relies on volatility exclusively to enable traders to take advantage of the acknowledgment of a stock’s price. Stocks with the highest volatility could be the best for swing traders since they have a high chance of achieving profits. 

What are the crucial elements of swing trading? 

There are several crucial elements of this type of trading that you need to remember:

• Volume: Considering the number of shares traded in the charts is inevitable.

• Timeframe: Traders should use multiple timeframes.

• Liquidity: Swing trading is when a swing trader is able to enter and exit positions in the market quickly. Preferably, traders should consider only liquid stocks. 

• Entry and exit points

• Risk reward ratio

• Stop loss

• Consistency

• Risk management.

What are the main benefits of swing trading? 

Of course, every ambitious swing trader eager to create his own swing trading checklist would like to know the main benefits of this type of trading. The main benefit represents higher returns, more efficient utilization of capital, more volatility, and the drawbacks of higher commissions. 

This type of trading also includes the following benefits:

• Maximizing short-term profits by capturing market swings’ bulk
• Need less time to trade in comparison to day trading
• Swing traders are able to rely on tech analysis to the maximum, clarifying the process of swing trading the best. 

How to start swing trading the best? 

Another key thing that numerous traders want to know in this case is how to start swing trading the best. In order to enter a certain position, a swing trader must have sufficient funds. He also needs to remember that it depends on charting software and a tech analysis setup. 

Also, swing traders should take into account trading channels and simple moving averages if they’re aiming to set up their early trades as they should have. Before considering swing trading, it’s essential to understand what it is, the main swing trading pros and cons, and to learn more about it.

Swing trading represents one of the most effective trading styles in the stock market, especially for beginners who have yet to discover its great potential. While thinking about creating a proper swing trading checklist, traders must acknowledge that it provides great profit potential for both advanced and intermediate traders. 

So, now that you’ve got a basic understanding of swing trading let’s see what a swing trading checklist should look like.

How to write down your swing trading checklist the best? 

Before writing down your swing trading checklist, it’s crucial to know that this type of checklist is essential for assisting in their trading journey. It represents a written document with a plan for traders that reduces common mistakes in trading, improves performance, and saves traders from getting into a lot of trouble. 

A swing trading checklist may vary based on a particular time frame and strategy. For instance, a swing investor or a trader might have time for an additional thorough checklist. It may include some additional check marks to be put physically on a page for every criterion in the checklist for their idea.

So, what are the key things that must be included in a swing trading checklist of this kind? Let’s get to know!

Key elements that your swing trading checklist should have

• Is your position size correct
• Are all the conditions in the stock market right for the swing trade
• Is the stop loss equitable for the risk/reward, i.e., the potential reward
• Are you violating any of your swing trading plan rules
• How are you able to get out of a swing trade 
• Are you allowed to trade in the market
• During your established trading time, are you placing the order at the right hours
• Is it included in your leverage tolerance 
• Do you have the right mindset and mind frame for your trade

This type of swing trade checklist can go on and on. It all depends on what kind of swing trader you consider yourself. Another crucial thing is that a swing trader should familiarize himself with market conditions before considering a trade. It’s a pre-trading routine that is essential for any trader to have clear. 

What else should be included in a quality swing trading checklist?

According to some other swing trading experts, here is what also can be included in a swing trading checklist: 

• Market Timing
• Selecting Individual Stocks
• Management

What does a daily routine of a swing trader look like? 

Once you’ve made your swing trading checklist, it’s good to know what one quality daily routine of a swing trader looks like:

• Do a good market overview: Get to know the latest developments and news in the market. Every trader needs to keep an eye on sector, holding, and market sentiment.

• Find potential trades: Scan what could be the potential worthy trades for the day. Find fundamental catalysts in two ways: By sector plays or special opportunities. 

• Create a Watch List: Make a special list of stocks for the particular day. Remember, these stocks include a fundamental opportunity for being a good trade and a fundamental catalyst. 

• Observe existing positions: Swing traders must check their existing positions during pre-market hours. 

• Check market hours: These hours represent the period for observing and trading. In most countries, these hours are from 9 am to 4 pm EST.

• Do an evaluation after-hours: After-hours trading is when swing traders do their performance evaluation. They must save all their record ideas and tradings for performance evaluation and tax purposes. 

For newbies, performance evaluation is also a crucial part of every high-quality swing trading checklist. It includes taking into account all trading activities and also identifying things that are in need of improvement. 

With this particular swing trading daily routine checklist, anyone is able to improve their trading and acquire huge profits. It only takes proper preparation, planning, and good resources. 

Bottom Line 

In this article, we’ve learned that swing trading is a particular stock trading strategy combining technical and fundamental analysis to acquire meaningful price movements. It usually catches these movements while avoiding the so-called “idle times.” 

With a proper swing trading checklist, any swing trader is able to achieve their long or short-term trading goals. The key is persistence, hard work, and willingness to follow each item from that list closely, listen to the stock market, collect key information closely related to the stock market, and be motivated to realize huge profits. 

That’s the only way success on the stock market with this list will be present! Good luck!