Swing Trading Question


I was just wondering if I could get some feedback on swing trading stocks.

I have my eye on a stock that pretty consistently bounces around +/- 5% of a rough median price and was thinking about swing trading it (alternatively I was planning on just selling covered calls on this particular stock anyway).

So if I went the swing trading route, and had a fixed buy-in price, I'd just set a GTC sell order for my exit point, wait for the funds to settle and place a GTC buy order for my entry price. I understand I would miss the up-side of a run-up, but I don't feel like we will see any explosive growth on this stock in the near-ish future, but I also understand the risk of losing potential upside if it does. I feel like I could earn a bit more swing trading it in the interim rather than just buying and holding and/or selling covered calls on it. If things go according to plan, based the entry/exit points I have figured, I’d be gaining approx. 2.5% per buy+sell transaction, possibly once or twice every couple weeks (or more/less since we obviously cannot predict it). If I miss a run-up and the price doesn’t come back down, I’d feel comfortable buying in at the higher price and either finding new entry/exit points, or even just holding for a while.

Alternatively, I’d set a buy-in price for myself and sell covered calls around my exit point. This way I gain a little bit more per trade if the numbers work, or still collect monthly premiums if the stock doesn’t hit my strike price. In this scenario, I’m not sure if this would still be considered swing trading but would require even less monitoring since I’d just be doing monthly calls.

Is there anything I'm missing? Anyone have experience swing trading having any advice/feedback?

Thanks in advance!


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