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Swing Trading Checklist - Key Points for Success

Updated: Nov 21, 2023

Swing trading has gained popularity among retail traders as an attractive approach in the stock market. In this informative blog, we explore the essential checklist that every swing trader should keep in mind to ensure they make informed decisions and avoid potential pitfalls. I, Kavita Agrawal, the founder of Exp Invest, will share my valuable insights to guide you in your swing trading journey.

Let's list down few pointers which covered in the video above as summary

1. Choosing the Right Brokerage Account:

  • Not all brokerage/trading accounts are created equal.

  • Risk management is the most important aspect of swing trading therefore check for the availability of overnight stop-loss facilities on positional holdings- this key feature is often missing in majority brokerage accounts.

  • Only Zerodha to our knowledge offers this facility.

  • The overnight stoploss facility can have different names like GTT (good till triggered), GTC (good till cancelled), and OCO (one cancels other).

2. DDPI Activation:

  • Having the GTT order is no good if you broker cannot debit your holdings without your authorization.

  • SEBI requires the manual authorization through CDSL TPIN every morning unless the DDPI form is submitted.

  • Here's the Zerodha support link for submitting the DDPI form to get rid of entering the CDSL TPIN every morning.

3. Systematic Approach:

  • Now coming to the trading aspect, you can opt for the Smart way or the Hard way

  • The importance of having a systematic approach in both situations is discussed in the video

  • Following a well-defined system for trading is important in both scenarios.

  • Proper trade tracking and management of positions is the backbone of your trading journey if you wish to stand tall and strong.


4. Position Management:

  • Using trailing stop-loss orders for managing positions is a non-negotiable.

  • Adjusting stop-loss levels based on market conditions as prices move will help you protect your unrealized profits from erosion in a sudden decline

  • Significance of trailing stop-loss has been explored in more details in the video.

5. Analyzing Past Trades:

  • Evaluating past trades to learn from winners and losers to identify good behaviors' and bad behaviors' is very important

  • All profitable trades are not good trades and all loss making trades are not bad trades.

  • Separating the quality of execution from profit or loss is part of your continuous learning in the market. This will provide you key information into further improvement of your trading system

  • Past trade analysis aids in avoiding repeating mistakes.

6. Using Professional Research Analyst's services for stock picking:

  • Leveraging the expertise of professional analysts saves your capital from unnecessary erosion.

  • Obtaining valuable recommendations from registered analysts who have years of experience, the right credentials and license from SEBI can help you cut short your learning curve as well.

  • Unless you are a full time trader, the amount of energy and work required to learn the complex skill of stock picking and execution is not worth it. So, be realistic and reducing your expectations from yourself by making the smart choice and follow expert advice of your chosen Research Analyst.

Conclusion:

Swing trading can be a rewarding endeavor, but it requires careful planning and a systematic approach. Key points such as choosing the right brokerage, using stop-loss orders effectively, maintaining a systematic approach, and analyzing past trades can significantly contribute to your success in swing trading. Remember to stay informed, manage risk, and learn from both your profits and losses to become a successful swing trader. Most importantly, take help from a SEBI registered research analyst for getting stock picks in the dynamic world of stock market.

For those interested in swing trading, I shared technical insights on popular stocks, including RELIANCE, NRBBEARING,SOLARA,GMDCLTD and KAJARIACER. The session also touched on stock selection strategies, the importance of setting stop-loss orders, and a reminder that protecting one's capital should always be a priority in trading


Join my telegram channel: https://t.me/tradewithkavita

To watch more session, visit: https://www.youtube.com/@EXP_Invest/featured

Thank you for reading.

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