subject: Identifying Swing Positions When Trading On A Market Index [print this page] When talking about swing trading, someone once said, "Most traders take a good system and destroy it by trying to make it into a perfect system." And while the Three Point Trading System, a proprietary approach to swing trading created by Premock Financial in Ft. Lauderdale, is a good system (even a great system), it isn't perfect. Every day trader or swing trader is going to occasionally face an unpredictable market and have to deal with loss. That's why it is important not only to identify technical entry points for the swing, but to appropriately enter the hedge, as well.
When markets move up and down in a short period of time, they create a jagged line on a graph and are known to be volatile. That means that for whatever period of time you are looking at that particular equity asset, there does not need to be any kind of trend established even though from a longer-term viewpoint, a trend may be identified. Premock Financial in Ft. Lauderdale uses swing positions to hone in on the sharp up and down volatility of the market, depending on price momentum (which is why they look at volume) and patterns (to identify future behaviors) in order to ultimately capitalize profits.
The strength of a swing position is that it can provide a perfect entry point before a long-term market trend develops, during which the investor can stay with the position until other indicators begin to show that the trend may be slowing or weakening. Premock Financial in Ft. Lauderdale uses the Three Point Trading system as a disciplined technical tool for market analysis that does not rely on human emotion or subjective interpretations of economic conditions. Premock Financial in Ft. Lauderdale provides the Three Point Trading System in order to use strict money management rules that incite profit from technical entries to buy, sell, or hedge a swing position, which can compound returns significantly.
The three points are trend analysis, the Box Theory of chart analysis, and stop loss protection to cut losses when trades turn in the wrong direction. The market is trying to choose a new direction when in a sideways pattern. Once it decides and moves beyond support or resistance, this is known as a breakout. The Three-Point Trading System analyzes trends in order to predict when a breakout occurs in order to choose the best entry point for maximum profit, rather than "chasing the trade" after breakout occurs. The Three Point Trading System provides clients the opportunity to profit from both up and down markets and to see volatility as a positive rather than a negative factor.
by: maxstephon
welcome to Insurances.net (https://www.insurances.net)
