Swing Trading Strategies

December 16th, 2015 by VantagePoint Software

What is swing trading anyway?

SWING TRADING STRATEGIES

This technique is often used by stock and options traders and tends to be more long term than day trading. Swing traders seek to capture explosive moves in the market, up or down, for profit. When the swing slows, they exit the position. As many swing traders will tell you – the trend is your friend.

If you break down the term swing trading into its components, the first part is a swing. No matter the technique, if there’s not a swing of some degree after you buy, then you will not be able to sell at higher prices and vice versa. Trading is the next part of the term and you shouldn’t take this lightly. There is a big difference from traders and passive investors. Traders don’t buy and “hope.” They never get married to a trade regardless of what they hear from the media, friends, relatives or whomever.

Swing trading can be broken down into three key phases:

1. The Development Stage

2. The Recognition Stage

3. The Bandwagon Stage

Knowing how to identify each stage at the optimal time and how to react during those stages is key. Here are some tips on improving your swing trading skills and increasing your profitability.

The Swing Trading Development Stage

The first stage is the œdevelopment stage.  Swing traders want to be able to identify an opportunity early on so they can get into position during the development stage. While this is obviously an optimal situation it is often difficult for traders to implement. Why? Because on a chart, this often looks like a congestion or balancing zone.

Recognizing Profits in Swing Trading

The second stage the recognition stage. This is where you can begin to see a surge in price, either upwards or downwards. Those fortunate enough to have entered during the development stage are often challenged with remaining in a profitable position for a longer period of time. The idea is to capture more of the swing, not to lose confidence and get out while leaving money on the table.

Swing Trading Exit Strategies

Finally, there is the bandwagon stage. This stage is usually determined by a plethora of market specific news reports mentioned on TV.

The bandwagon stage is where many people lose money when investing, especially when investing without a defined plan. Now, that is not to say that those who enter the market at this time are going to lose, but all too often the trend is over by this time.

Timing is Key for Swing Trading

If you’ve already picked up on the common trend here (see what we did there?) timing is everything for swing traders. It’s near impossible to be successful in any of these 3 stages if you don’t have a system or a strategy for knowing what may happen in the market.

Meet your solution.

VantagePoint Trading Software has been utilizing Intermarket Analysis with predictive technologies to forecast market strength and direction for the past 25 years. This proven technology helps swing traders identify developments before they happen, gives them the confidence to stay in position longer and warns of when a trend may be coming to an end. With accuracy documented up to 86% for some markets, this technology has changed the game for swing trading as it provides consistent and accurate data for traders.

VantagePoint Software Demo

Tell Us What You Think

When Mario Draghi Speaks Do You Ditch the Dollar?

December 10th, 2015 by VantagePoint Software

Mario Draghi

Some think he’s a downright scrooge while others may call him a benevolent Santa. Whether you love him or hate him, when Mario Draghi, President of the ECB (European Central Bank) speaks, the world listens.

On December 3rd Draghi delivered a major policy decision speech. It revealed that the ECB pushed its deposit rate further into negative territory by reducing it by ten basis points to -0.3%. Major refinancing operations rate and the marginal lending facility rate were not altered, remaining at 0.05% and 0.3%, respectively. In addition, the ECB extended its asset purchase program under which it purchases bonds worth 60 billion euros every month, to March 2017 from September 2016, which isn’t exactly a hard deadline. Those don’t really exist in the Central Banker’s world.

Mario’s speech last week sent currency markets askew. The US Dollar was hit hard by Draghi’s comments for sure. Forex traders still want to keep finding profitable opportunities, though. So what should you expect going forward?

On the fundamental side, this is a balancing act between two central banks (FOMC and ECB) propping the Euro up for its inevitable next decline. While last Thursday’s move was violent, the markets have leveled off since. The US Dollar has also stabilized.

With the big fundamental play behind us, traders need to find the right time to jump back into the dollar. But here’s where things get tricky.

Those that are utilizing leading indicators, like those found in VantagePoint, are at an advantage. Trend forecasting capabilities give traders the confidence to enter a currency market after it’s made a big move. Whether it’s a countertrend reversal or a further confirmation, traders utilizing technology that forecasts markets with up to 86% accuracy are prepared for these types of events.

VantagePoint Software Forecast

Tell Us What You Think

After Market Trading: How to Be Profitable

October 23rd, 2015 by VantagePoint Software

after market trading

Whether you are an active day trader who can’t get enough action during the six and a half hours the stock exchanges are open or an investor looking for new profitable opportunities, after market trading offers an attractive option. The after-market can be especially profitable for traders who have an added technological edge, like VantagePoint Intermarket Analysis Software.

After Market Trading Defined

The stock markets have gone through many changes, from the old days of hand writing trades on chalk boards to the high speed electronic networks of today. Still, in the recent history of the exchanges, most traders could only buy and sell stocks during the regular business hours of major stock exchanges. For most US Exchanges (NYSE, NASDAQ,), regular business hours is typically defined as 9:30 AM – 4:00 PM Eastern Time. Trading before and after regular exchange hours first became available for large institutional players in the early 1990s.

Today a number of electronic trading networks (ETN) allow all investors to keep trading even when the big money players have stopped participating. Nearly all the major online brokerages and full-service brokerage firms will allow you to enter buy and sell orders for stocks to be executed after the exchanges close. Some may charge extra commissions and fees for after hours, but not all, so you’ll need to check with your broker.

However, with any investment there are inherent risks. Here are a few risks involved with after market trading:

  1. Increased volatility. While AAPL, NFLX, GOOG and the other names should be okay to trade in the after-market, for stocks with limited trading activity, you may find greater price fluctuations than you would have seen during regular trading hours.
  2. Lack of liquidity. During regular trading hours, it is easy to match buyers and sellers as there is sufficient interest on both sides of the market. During after-hours, there may be less trading volume for some stocks, making it more difficult to execute some of your trades.
  3. Bigger bid ask spread. Less trading activity could also mean wider spreads between the bid and offer prices. As a result, you may find it more difficult to get your order executed or to get as favorable a price as you could have during regular market hours resulting in slippage. 

VantagePoint Provides an After-Market Edge

Considering the inherent risks, you need a tool to help you find profitable trading opportunities in the after-hours. VantagePoint can help as it forecasts the big trending or gap moves in a stock that often happen in the after-hours market due to an earnings announcement or other important news.

How can VantagePoint do this? By using intermarket analysis and a neural network process to find hidden patterns and relationships between markets, VantagePoint’s proprietary indicators provide short-term trend forecasts that anticipate trend changes. This process provides a unique perspective on markets that uses foresight, instead of hindsight, allowing you to find profitable opportunities if you are after market trading.

VantagePoint Software Demo

Tell Us What You Think

Greece Crisis and the Effects on Global Markets

July 2nd, 2015 by VantagePoint Software

greece crisis

It’s safe to say the entire world is feeling the effects of the current Greece Crisis. Regardless of which markets you trade in, there is no doubt this event has caused increased fear and uncertainty for most traders.

The DOW dropped over 350 points on Monday – if your current trading strategy is to follow in the footsteps of what has already taken place then chances are you got caught off guard and ended up on the wrong side of the trade.

VantagePoint’s proprietary market leading forecasts were ahead of this dip and gave traders using the technology the insight that something big was coming. How is this possible? By utilizing Intermarket Analysis and a Neural Network process, VantagePoint identifies and analyzes 25 intermarkets that drive each forecasts market and to what degree the impact will be.

In the video above we take a look at recent forecasts for stocks, ETFs, Forex pairs and commodities that show not only the impact of having this knowledge ahead of time but also just how connected each of these markets really are.

With VantagePoint, you don’t need to worry about adjusting your strategy based on timing, market or any other outside factors. Trust in the 86% accuracy and you’ll find yourself on the right side of the move more times than not.

VantagePoint Software Demo

Tell Us What You Think

How Can VantagePoint Software Diversify Trades in your Portfolio?

May 27th, 2015 by VantagePoint Software

How to Diversify Trades in Today’s Global Markets

Learn to diversify trades

If you’re looking diversify trades in your portfolio then it’s important to ensure you have a system that is accurate and consistent regardless of the market you are trading at that time. VantagePoint’s predictive technology works across all markets and conditions to help futures, forex and even stock traders become consistently profitable, no matter their different trading styles.

In today’s video we showcase recent successful VantagePoint forecasts for the following markets:

Futures chart – We’ll show you a Soybean forecast that helped VantagePoint traders profit $2650 per contract in just 11 trading days.

Forex chart – We’ll show you a U.S. Dollar/Canadian Dollar forecast that helped VantagePoint traders profit $4183 per standard lot over 7 days.

Stock Chart – We’ll show you a Earthlink $ELNK which helped VantagePoint traders cash in profits of 47% in just 36 days.

Why should I diversify trades in my portfolio?

Today’s markets are completely intertwined and have a global impact on one another. Rather than trading in isolation it’s important to have a global perspective on how other markets push and pull the price of the market you are trading. Understanding these complex relationships can help you win across the board when a trend takes place.

VantagePoint Software, developed in 1991 by Market Technologies, LLC holds 2 patents on the science behind applying Intermarket Analysis and Neural Network technology to a trading software. Our software identifies the 25 intermarkets for each stock, commodity, forex pair etc that you are trading and identifies what weight should be applied to each. The end result is a deadly accurate forecast for the next day’s trading range.

VantagePoint Software Forecast

Tell Us What You Think

The Global Market Effect of the Weak GDP

April 29th, 2015 by VantagePoint Software

Does the Weak GDP Affect My Current Positions?

trading during a weak gdp

The GDP growth has stalled and did not meet the forecasts. As well, retail spending is slowly improving. What does this weak GDP mean for the stocks you are trading? How and to what degree will this effect your currency pairs in the Forex market?

These questions are virtually impossible to answer and are purely speculation. Instead of trying to follow all the news and doing hours and hours of analysis to come to a conclusion that helps you only to break even, you have to change your approach.

Global Market Analysis and the Weak GDP

Intermarket Analysis technology found in VantagePoint gives you insight into what you can expect stocks, ETFs, Futures, and Forex pairs to do over the next few days with incredible accuracy.

Watch the video below to see the following recent forecasts from VantagePoint that resulted in lucrative profits:

GBP/USD 551 pips in 10 trading days = $5510 profit per lot

EUR/USD 152 pips in 3 days = $1520 per lot

MSFT 18.22% profit in 13 days = $7.57 per share

AAPL  5.47% profit in 19 days = $6.87 per share

Can you afford NOT to have these powerful forecasts?

VantagePoint Software Forecast

Tell Us What You Think