Basic tenets of swing trading - Linda Bradford – Street smarts.

·         Stay in one time frame! Yes, it is important to be aware of the big picture, but it should not affect where you get into or out of a trade or how you manage it. Don't turn short-term scalps into "big picture" trades.

·         When in doubt, get out! If the market goes dull and quiet after you enter a trade and makes no progress in the direction of your entry, do not wait until your stop is hit. Just get out! Seek a more active market or better trading opportunity. All of the strategies of swing trading techniques should reward you immediately. If they don't, it is likely your trade will turn into a losing one.

·         Don't trade in quiet, dull markets. Dow, Livermore, Rhea, Taylor, Gann-all the greats say this over and over. There must be activity and liquidity in order to trade profitably.

·         Don't carry losing positions overnight. Exit and try entering at a more favorable level the next day.

·         If the market offers you a windfall profit on a trade, lock it in! (Windfall means a much bigger profit than anticipated.) Take profits on half or all of the position. Trail an extremely tight stop on any balance!

·         Finally, remember that both in short-term trading and mechanical systems, the distribution of winners is skewed. Most of a month's profits might come from only two or three big trades. Much of the time the individual profits may seem small, but more importantly the losses should be small, too.

It is vitally important to lock in the best trades. Be defensive and don't give back profits when swing trading!