Swing Trading Guide — Step-by-Step Guide & Transcript

[00:00] Trading is already hard enough. And imagine only having a small window of 5 to 6 hours, or even just a couple of minutes. And this is usually not doable for a lot of people because you work jobs and a different time zone

[00:13] that the market is available in those small window periods. And that's exactly where human trading falls into place. Everybody can do it. It doesn't matter if you work a 9 to 5,

[00:25] you work during the day, you work during the night. If you're a swing trader, you can basically trade whenever you want. And actually, you can make a lot more money as a swing trader compared to a day trader or a scout trader.

[00:38] Those are the things that I'm going to share with you in this video, so make sure you watch all the way to the end. So you're probably wondering, what is a swing trader? Well, the basis of it is a trader that holds a position for more than 7 days and usually closes the position at about 2 to 3 weeks max.

[00:54] So a swing trader is when you swing your position throughout the weekend and you hold into the other weekend. Anything under 7 days or under a position that you hold throughout the weekend is considered

[01:06] an intraday or a day trader. Swing traders are in positions for 7 days and above up to about 2 to 3 weeks. A day trader is somebody that's in the position just for the day.

[01:18] So for 5 to 6 to 7 hours. And then a scalp trader is somebody that's in a position very fast. It can be 15 minutes, one hour, two hours, and that's a lot for a scalper. So this is a very simple and broad terminology of what is an actual swing trader.

[01:32] But the swing trader actually earns his title by the way he analyzes the market. And that is by analyzing the market on the higher time frame. So what makes a swing trader a swing trader?

[01:44] Well, the first thing first is that you're only looking to take maybe one to two positions a week max. Because as a swing trader, you're taking the best quality trades that can play out in the

[01:56] following week or two. So if you're looking for a position to play out in the next week or two, you usually have to be more patient and they don't come around every single day and sometimes even for weeks. So you're taking around one to two trades a week max.

[02:10] And you're going to only be focusing on the markets that are low volume markets. You don't want to be involved in markets that have a move within the day or within the hour. You're looking to catch a big move in the market where you can hold it for about 7 to

[02:26] 8 to 9 days. This way you can maximize your profits. And this is good because if you work a 9 to 5 or you're just busy with your life, this lets the trade give you plenty of running space and also availability for you to enter

[02:39] the trade whenever you have free time. So you don't actually have to be watching the market every single day. So as a fincher, you're focusing on the markets that move the slowest, but respect the market structure the most and respect the strategy the most simply because they move slower and

[02:55] it's good because in the market, patience pays and the finch traders are the most patient traders, that's why they make the most money. And they make the most money not only because they're actually catching one of the biggest moves in the market that a day trader or a scalp trader can never catch, they're actually

[03:11] more than a day trader and a scalper. Simply because they're taking less amount of trades and the less amount of trades that you take, the higher quality of the trade that it actually is. So here you would be risking a higher percentage than you normally would on a day trade or a scalp

[03:27] trade. So the higher risk you take on the trades with a bigger move that you would be taking, pretty much means you're going to make more money. And what really makes a swing trader a swim trader is that they spend no time in front of the charts compared to a day trader or compared

[03:42] to a calmer. You really think you only have to be in front of the market maybe one to three hours a week because once you're in a position you simply don't forget you don't have to monitor the position every single day, every single hour, every single session. You just execute the trade,

[03:58] wait for it to either take profit or you wait for it to hit your stop loss and that is as soon as you enter the trade. Because as soon as you enter it, you don't look at it into a hit either or. But before you enter it, you can just check in pretty much every session once

[04:11] a day or twice a day. So you don't actually have to be in front of the computer every single day at a specific session for a specific amount of time. As soon as you enter the trade, literally set and forget. And most importantly, it's most appealing to the majority of people

[04:25] because everybody can do it. You can work a 9 to 5, a 7 to 3, any different time zone that you work you can be a team trader because you can trade the market at any session and you can simply hold the trade for five to six days where if you're to be busy at work you don't have to be

[04:41] paying attention to the market because your trade is simply just running into profit or running into stop-loss so i'm going to lay out some pretty simple and obvious pros and cons so obviously the first pro is that literally anybody can do this you can be working a job you can be going

[04:57] to school full time or you can be retired and you can actively become a swing trader because it's almost good that you're busy with a job or busy at school because you can simply only dedicate the time that you need to to the market and then you go focus on

[05:11] something else. It makes you actually be more patient in the market which is actually in turn going to give you better results because you're taking better quality trades. So a good pro realistically is that it is available for absolutely everybody.

[05:24] That actually comes with a con where it's a double-edged sword and if you have too much free time that you can become impatient because you simply have nothing else to do. If you're a retired person and you simply want to get involved in the market, you're doing nothing all day.

[05:40] You're going to be more prone to look at the market than somebody that's going to school or has a job. So you might be finding taking more positions and you might think that taking more positions is going to get you more money. That's not how it works.

[05:53] So, the con is that if you have no patience, this is not the right position for you and simply will not work out. Second is you're more likely to succeed than any other different type of market approach,

[06:06] more than a scalper and more than a day trader. Why? Well, simply because the rule of less is more in trading. And a swing trader does less and makes more.

[06:18] They only take one to two positions and they make more money and catch bigger moves than day traders or scalpers where they're taking three to four to five to six positions a week for simply having less results because they're executing more.

[06:32] Picture a swing trader as a sniper. A sniper is simply sitting at the back of a hill waiting for its target to get in place and as soon as they take the shot, they're 100% sure that they're going to execute on that shot.

[06:45] And picture a day trading scalper as somebody with a pistol or even a bow and arrow that you can simply shoot it a bunch of times and hopefully get lucky and hit one time. So a sniper, also known as a swing trader, is somebody that executes the perfect trade

[06:59] in a rarity of the ring. Your obvious exceeding with a swing trading approach is more likely than a day trading or scalping approach The approach of you shooting a target with a sniper you going to be a lot more accurate

[07:12] than shooting it with a pistol or a bow and arrow. A con with that, though, might come that you don't know who you are just yet. Because I didn't know I was going to be an extremely successful day trader at the beginning. I wanted to be a day trader.

[07:24] Day traders are the main topic that everybody sees on social media and it's been normalized in the industry. So, a con is that you can come in thinking that you want to be a day trader and then you end up a scalper, or you want to be a scalper and you end up a swing trader.

[07:38] So, you kind of have to find yourself in this journey of a trader and that can honestly take some time, but that often comes to you and the amount of dedication that you put into this never-ending craft. And obviously, one of the biggest pros is that you can make a lot more money than day

[07:54] trading and scalping because you're simply getting bigger positions. catching a trade that will run for five six seven eight nine ten days one position opposed to day trading scalpers that will have one position run for one

[08:09] to two to three to four hours so they can only maximize the profit within how much that they make if you hold a position for a week you're catching a whole week of a market move that one simple day can never outdo a whole week

[08:23] of a market move so you can actually make a lot more money but that comes with the con as well that you can obviously risk more money and you can lose more money but risk to reward ratio and all of that will outweigh and you're going to be confronted by this event. You

[08:38] can picture the big profits that you would make in spring trading as if you were to be deep sea fishing. So you obviously have to wait a lot more time for your bait to reach all the way to the bottom and you have to wait a lot more time for this big genoa fish to eat the bait and it's

[08:54] cost you a lot more money to go out there into the deep ocean and pay for this expensive big bait for this ginormous fish and then eat it and then it's going to take you some time to then reel that big fish up hopefully the line is not snapped but at the end of the day once you get the fish on board

[09:10] all of it is worth it compare it if you were to just get a little boat go out to very shallow waters use a very simple rod very simple bait you can get a lot of nits of fish but it'll never

[09:22] compared to one big fish that you can simply get by one simple cast compared to you having to cast out a hundred times that potentially equal the same size of one big fish that you would get as a

[09:35] bt fish and that actually just reminds me that i literally just made 363 000 i think in the last position that i took and i did not take a position for nearly two weeks in order to catch this one

[09:48] trade because the market simply wasn't giving me a good trade opportunity. So I waited for that great opportunity and I risked more and clearly it paid out. It was my biggest trade where I made $363,000 and I had just broken my new record. So this is a perfect example comparing to the

[10:05] fishing. I would much rather catch a big fish at the ocean than catching a bunch of little fish right by the shore. And if you want to see that video on how I made $360,000 in one single trade, Make sure you check this video up here. I'm going to break down exactly on how I did it

[10:21] So you can see if you can replicate the same exact trade and also catch trade just like that All right, actually, that's it and the subscribe button is here So if you have not subscribed hit the subscribe button. It's on one of these sides hit the subscribe button now

[10:34] So now after you hit the subscribe button, please make sure you have said it I'm gonna actually show you how you can actually become a swing trader We're gonna go ahead now to the chart and I'm going to show you exactly how to analyze the market for the swing trader and how I have been personally doing it for the last seven six and a half years

[10:50] of trading in these markets so let me show you that. Alright so first things first that I want to cover is going to be top down analysis. The first thing that makes a trader a swing trader is going to be the analysis on the time frames that they do it.

[11:03] So we have to start from the top down. So we will be starting from the monthly time frame. You guys can see up here to the top left corner I have currently a star on all the time frames

[11:15] that I use as an active stream trader in the markets. So as you can see I have a star on the one month, one week, one day, the four hour, two hour, the one hour, the thirty minute and the fifty minute. So I do not use any other time frame outside of these time frames. This is the only one that I focus on in order to be a successful day trader in the markets. Now there is many different time frames and there is many different ways of how to look at the market but this is what I have been using and it is what works for me.

[11:45] Same way how there is a hundred different types of boats out there and a hundred different types of rods in order for you to go out there and fish and deep sea, this is what works for me and it's what I will be fishing today. So after you understand all of these time frames, you have to create a top down analysis.

[12:02] So top down is very self explanatory. You're going to start from the top, which will be the highest time frame which is going to be the monthly. And then you will work your way down to the weekly time frame. then you work your way down to the daily, 4 hour, 2 hour, 1 hour, 30 minute and 15 minute.

[12:20] So everything we are doing here is you are simply just zooming in into this candlestick every single time. As of right now every single one of these candlesticks are going to be one week.

[12:32] This candlestick as of right now has 1 day and 14 hours left because we are right by the ending of the week. So, you're going to look at the monthly time frame. So, Anthony has about 15 days left in order for this time to close.

[12:47] The daily has about 17 hours in order for this time to close, so on and so forth. So, every single time frame represents what each one of these candidates is valued at.

[12:59] So, each one of these candidates is currently valued at one day. So, this is one day, two days, three days, four days, five days, six days, I head over to four hours. Each one of these canisters is going to be valued at 4 hours.

[13:13] As you can see right here, this canister has about an hour and 20 minutes in order for it to go. So when we do a top-down analysis, we're going to start from the highest concept. So this is where I would then go into the next step, which is going to be the trend.

[13:29] So top-down analysis and understanding the trend of the market kind of go together. But a lot of people get this wrong because they don't understand that you have to identify the trend in order.

[13:41] You have to go from the top down. You can't just go from the 4 hour to the 1 hour to the day to the month. You're out of work. It doesn't make sense. You have to start from the top down in order for you to understand the trend of the market.

[13:54] So, this is where we would start off on the time frame. We would identify this time frame as bearish simply because this market is creating no over low and lower highs and this market is purely heading to the downside overall Then we would go to the weekly time frame and in the weekly time frame we can clearly see that this market is currently

[14:19] bullish. Now this is a very tricky one to tell. I can tell right off the bat because I'm an experienced trader. I've been doing this for seven years already, but any rookie or beginner trader can easily mistake this for a market that is heading to the downside. And this right here is a bullish market because as of right now

[14:37] this is the higher high point. So it might look like it's overall going down, which you're kind of right, but the actual structure of that point is budged. So picture it as if the ocean's current might look like it's going west, but the

[14:56] internal waves are going east. This is simply because the winds of the overall ocean are pushing it that way but the ocean has to move with a current and that current coming back in is

[15:09] what this weekly time frame is and it's more of a zoomed in version of the market so this currently right now is bullish you have the monthly time frame bears and then you have the weekly time frame bullish we head over to the daily time frame you can also clearly tell the daily time frame is

[15:27] bullish. This marked the structure heading to the upside. This is the lower high, lower low, and then here we have just recently shifted to the upside. This marker right here is currently bullish, making now the weekly and the daily time frame both bullish. So as of right now, it's making more sense to buy than to sell.

[15:50] But we keep it going. We go over to the 4-hour and on the 4-hour you can clearly tell that the 4-hour is bullish as well. The 4-hour is clearly heading to the upside. So we're creating higher highs and higher lows.

[16:07] Making this 4-hour time frame bullish. So think about it for a second. You have the monthly time frame bears, but then you have the weekly bullish, daily bullish and the 4-hour bullish. I think it makes more sense to buy that stuff.

[16:21] That is exactly what we would be doing with this top-down analysis, identifying the trend. We want to understand what is the market doing over the top. But after you understand what the market is doing overall, you have to find an area on

[16:35] where to buy. Because you can't just buy in the middle of anywhere. It's like you just can't drive out into the middle of the ocean and just park your boat wherever you want and just throw a bait thinking that there's going to be fish there. Yes, the ocean is huge and yes, there's many fish out there, but if you want to get a really good fish, you have to go to a shipwreck,

[16:53] or you have to go where there's caves, where there's certain spots. I don't know if I'm not a fisherman, but I have no fucking idea. But you have to go to the spot where the fish are. It's the same thing here. You have to enter the trade where the trade's going to move at. You can't just enter at any point.

[17:05] That's just not how it works. You can't just go fish at any spot. That's just not how it works. Now, you can catch a fish, but it's not the big one. Now, you can catch a trade outside of the spot, but it's just not the big one. So this is what area of interest comes into.

[17:19] So you wanna enter a trade at an area of interest. And then this can be identified as a spot, also known as support and resistance, which is where you can take a trade to buy as support,

[17:32] or you can sell a trade to sell as resistance. When you're looking to buy a trade, you wanna make sure that you have a support level. Picture support as this table right here. So I'm using this table as support

[17:44] to push myself to the upside. Same thing that the market does. The market uses a level of support, for example, like this one right here, to push itself to the upside.

[17:56] The market came into this area, used it as support three times, and it clearly had a push to the upside because of this support area. Now, a support level can also be a resistance level.

[18:08] Support and resistance is a vice versa. Same way how I use this table to push myself up, I can use this table and pull myself down if I want to use it as a resistance. Resistance is like a roof, it will push yourself down.

[18:21] So, we can identify a resistance level as this spot right here. You can see how the market used this spot as resistance and then it pushed the market to the downside. And then you can see how it used the same resistance level as then support.

[18:36] Because you can use the same level of support to push yourself to the upside as then resistance to pull yourself to the downside. This area is also known as area of interest. It's an area of interest

[18:50] because whenever you're above it, use it as support. Whenever you're under it, use it as resistance. This is how you would want to spot an area that you would want to enter a trade to then execute it with overall time frame and in your favor, personally or the other side. So after you have this area of

[19:07] interest or support, area of resistance level, you're going to do the same thing. Oh, by the way, don't let these What if people trick you into this new supply and demand zone or this order block? All that shit is bullshit. I'm telling you right now, I've been in the market for long enough that I would know if

[19:21] something new comes into the market and it's literally they got tired of people selling support and resistance courses and then they just came up with, you know what, okay, let's just rename it to then supply and demand.

[19:33] All right, let's rename it into order block. It's the same shit at the end of the day. Nothing changes. Supply and demand is literally a different word for support and resume. They have both the same exact effect. So do not have anybody out there trick you into the, have the secret way on how to spot supply and demand,

[19:50] or the secret way on how to, oh that's bullshit. Trust me, I'm saving you guys the time. And I will literally make a video of order blocks, supply and demand, or whatever word they want to call it, just to show you guys that it's literally the same shit.

[20:03] So, I'm speaking to that because I'm tired of these people explaining these bullshit videos that make me think they make no sense. So after you have your area of interest, blind demand, whatever the fuck you want to call it, then you have to have your entry statement.

[20:16] That's going to be the reason why you're going to enter the trade. So, in the exact same as you're going to be fishing, after you throw your rod, the fish has to have a reason why to enter your bait. So you have to have a nice juicy bait in order to not, you're not going to bite the hook,

[20:31] you're not going to put it on yourself. So you need to have a good entry signal in order to execute this trade. And the entry signal is the last point in the actual trading trend to execute.

[20:43] There's other things that have to go after the execute, where I'm going to explain just in a second. So the entry signal happens after the top-down analysis, happens after the trend, happens after the area of interest,

[20:56] then you have the entry signal. A lot of people, when they come into trading, they just focus on the entry signal at first. So, the entry signal that you would be looking for is going to be an engulfing canvassing.

[21:12] Engulfing moves when something eats something or something is bigger than something So here is where you would look for an engulfing canvassing So if you looking to buy a position you wanna make sure you have a bullish engulfing candle

[21:27] Picture this as a red candle and then picture this as a blue candle. What is this candle doing right here? It is engulfing this candle and it is now going to head to the upside.

[21:39] And if you're looking to sell, you need to have a bearish engulfing candle. you have a blue candle and then you have a big red candlestick which is then going to confirm this position is going to be heading to the downside.

[21:53] They have a bullish engulfing candlestick and a bearish engulfing candlestick. Very simple, very straightforward. One candlestick that eats the last candlestick. As you guys can see right here, this literally happens everywhere in the chart.

[22:08] This right here is a prime and perfect example of a bullish engulfing chemistry. This bullish chemistry has engulfed this red chemistry. And at the turn, we head it to the upside.

[22:22] This bullish chemistry right here has engulfed the last four to five chemistry. So obviously, the more candles that the engulfing chemistry keeps, the stronger.

[22:35] The best combination you can possibly ever ask for. If you were to throw a bait into the ocean, you would have 5-6 fish about a bite. It's a great signal that you're about to catch a fish. So, this is a great signal that this trade is about to continue going in the direction that the canvas fish has been goaled.

[22:52] Make sure you guys remember that. So, this is going to be a very single-singled-singled canvas fish. This right here is a perfect example of a very single-singled-singled canvas fish. this candlestick clearly has engulfed this new candlestick.

[23:08] It returns and it then heads to the upside. And I can go on examples for this for literally hours. You can see that every single candlestick engulfs for the majority of the time. As you can see right here, this candlestick right here has clearly engulfed the last 1, 2, 3, 4, 5, 6, 7 candlesticks.

[23:28] That should be a really good indication that this trade is now then, once it heads to the upside, and it's nearly listed. Now, it does not happen that there's usually more bullish engulfing candlesticks or more

[23:41] bearish engulfing candlesticks. That is a complete myth. It is literally a facade. If the market is heading to the upside, you're probably going to have more bullish engulfing candlesticks, obviously. If the market is heading to the downside, you're going to obviously have more bearish

[23:56] engulfing candlesticks. English engulfing is not stronger than bearish engulfing. Bearish engulfing is not stronger than bearish engulfing. They both have the same equal effect. The only thing that matters is what is the trend doing? The trend is going up, you want a bullish engulfing.

[24:10] If the bearish, if the trend is going down, you want a bearish engulfing hand. So now you are officially in your position. You have your entry signal and you have officially entered the trade. Well, what now, right? That's, what's the fun to you do now?

[24:23] Well, what do you do after you catch a fish? you know you rearing them in or if you have an automatic rod to pick the body and rear them in. Well this is kind of what you would do in trading. You would just click on buy a trade,

[24:37] sell the trade and then you forget. You wait for your trade to either take profit or to raise it to hit the top line. Once you catch one of these big pushes, you click on the rod where it rears it in for you and you just wait for it to hit the top of the boat, you grab it, put it in,

[24:52] do it again or you wait for the line to snap or for the fish to get off the hook. If it happens there's nothing you can do about it it is absolutely inevitable. It is the same exact same trait if you lose a position there's nothing you can do about it it is absolutely inevitable.

[25:08] You can learn from that loss and you can see if you did something wrong and then use that to your advantage for then the next trade. If you did something wrong you fix it you don't do it again but if you did nothing wrong you simply just take another trade it's going to happen you're going

[25:21] going to lose trades and start the market. If you just lost a fish, let's see if the line is too light, if your hook was too small, if the fish was too big, you analyze that, fix it, you do it again, it's going to happen. But sometimes the line might break, sometimes the hook might come off, there's nothing you can do. It is inevitable that you're not going to stop yourself from fishing if you just lost a fish.

[25:44] So anything that's going to give you more of a reason to stay there and catch another big fish. It'll make you more patient, and when you catch that fish, it's more successful, it's more rewarding. Same as when you trade. You lose a trade, you don't quit, you just don't, you know, leave.

[25:58] You wait for the next good trade, take that good trade back, make your losses back, and then you're profitable. And at this point, if you've learned fishing, it's just a side hustle, because then this might turn into a fucking fishing channel. It's just a side hustle. So after you've done that, this is pretty much everything you would need in order to become a swing trader.

[26:15] Obviously, this is all very entry level. And it pretty much sums up, you only have to take one to two positions a week max. If you don't take any trades throughout the week, that's totally fine.

[26:27] I've gone two to three weeks without taking any trades. But after that happens, I get a really, really big winner after that because I've been waiting for a very solid trade setup. I want to make sure that you are taking trades on low risk pairs, on pairs that don't move

[26:41] that much, that don't have a lot of volatility, so you can take a high percentage risk on your account. That way you can actually make more money than a day trader, than a scalper, than any of these other want to be trades.

[26:54] I personally love the fact that I'm a swing trader. Obviously you can tell. I am the CEO of Swing Trade Lab, one of the top educational companies in the world, where We let traders make anywhere from $1000 to $1500 a week as a dedicated set and forget

[27:11] trader. If you don't know what set and forget is, well it is initially the creation of the best link trading strategy out there in the market. Let traders make profits like these or even these. If you don't know what set and forget is, just hit the link in the description below.

[27:26] It's a video that explains to you exactly what set and forget is and what it is consisted and how it's net traders make any more from $1000 to $1500 a week as a beginner to center figure trader.

[27:38] And it's not just videos, I literally get on a call with you every single week where I share with you my top 2, top 3 or even top 4 pairs that I trade for the week so you can have the same results as I do.

[27:50] Picture it as if we were to go fishing together every single week and I'm going to share with you the best spots that you can go and fish at. The odds of you catching fish are going to be a lot higher than I'm not. We're the exact same thing in the market.

[28:02] We're going to be taking the same trades together on the weekend. So you can have the best odds of making money rather than not. It's not like all these other guys. Just give you videos and say peace out. Now, we're together every single weekend.

[28:14] So I can show you what Settling Trade is about. If you want to know more about Settling Trade and how it works, make sure you hit the link in the description below. And I'll see you guys inside. And thank you guys for watching the video all the way to the end. I'll see you guys in the next video.