Trend trading is fine when there is a trend. But what to do when there is only volatility in the short run and the price always comes back? This is the heaven for swing traders, but is doesn’t need to be hell for trend traders.
For one, there are always independently moving investment targets. We live in a world of trading correlation, but still there is always something moving on its own news. Now with the many ETFs available, it is also easier for traders focused on the stock market to participate in these special situations.
There is another method and that is to go with the flow. If the market likes to swing forth and back, be it, swing trade it. If it changes its mood and start more to trend, switch the system and trend trade it.
Sounds ridiculously easy, but this swing trend trading system has of course a tiny problem. You never know whether the next swing will become a trend or not.
There are two solutions to this problem:
- Generally trade only swings in a trend or on its own. Perhaps trade the market only from the long side and skip the shorting signals.
- Trade the swing, but if the trade has become profitably enough, switch the trading system to a longer term holding or investing strategy.
In both cases the trading itself could be done with a specialized swing trend trading software. The trader then has only the duty to select the right trading horses. Use this swing trend trading software and concentrate on the right stocks.
The software will probably beat you on the raw trading side and you can focus on the part that human intelligence still does better than computers.
This second part is understanding the world. It is selecting the stocks that have a reason for volatile swings right now and that may have an ongoing trend in the future.
Finally, teaming up with this automated companion might make your trading joyful again. Or it may even solve a trading block.