Chapter 11

Knowing Your Entry and Exit Strategies

IN THIS CHAPTER

Bullet Getting to know how the market works

Bullet Identifying key entry and exit orders for your swing trades

Bullet Figuring out how to place orders whether swing trading is your hobby or your living

Trade execution is the home stretch of swing trading. If you’ve dotted your i’s and crossed your t’s, then how you execute your swing trade is unlikely to spell the difference between success and failure. Still, you should perfect entering your orders as much as possible so that you aren’t burned by a security that’s in the process of reversing direction or purchasing at a much higher price than necessary. Perfecting your order entry largely means knowing what type of order to enter, a factor that’s mainly dependent on whether you’re a full- or part-time swing trader. If you’ve done your homework, though, your execution strategy should emphasize entry with the flow of the market.

If you’re a full-time swing trader or you execute trades during market hours, you have more order types at your disposal than if you’re trading part-time. You also have the opportunity to use a couple of helpful tools to refine your trades: intraday charting and ...

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