Are you going to show us like a your secret strategy today on the screen over here after today won't be a secret. Oh my. God So typically when I'm looking to pick a particular company, the difference a little bit is that in day trading, you tend to go for the stock first. In swing trading, you actually tend to go for the news first.

Oh, so how would you compare swing trading versus day trading Like what's the advantages over day trading? Swing trading means taking a trade that may take a couple of days, weeks, or even months to develop and for you to close. If you're a part-time Trader Or you're looking for a more passive strategy that doesn't require you to sit at a desk all day long staring at the charts, then this video Lesson is made for you. I'm here with Oren the Oracle over here from Humble Traders Community If you guys been watching my channel for a while then you know how I met Oren He was my mentor now a friend and I'm really happy to say that he's here to share the swing trading strategy with you guys today and also besides being a friend, he's also the biggest baller Trader that I know so Oren So nice to finally have you on my YouTube video. It's a pleasure to be here! Yeah, so can you tell our viewers, um, how you trade when it comes to swing trading and what kind of strategies are you going to teach them today? So typically when I do swing trading strategy, it's usually more of an earnings strategy.

So it's basically looking at the estimates, looking at thesis, and trying to figure out if that a negative or impact on the stock earnings in the future. Okay, very cool. Are you going to show us like a secret strategy today on the screen over here after today won't be a secret. Oh My.

God. So let's do a really quick Swing Trading 101 here. for those who are new to swing trading Oren Can you tell our viewers uh, what swing trading is and why do you like to utilize it to trade the market today? So swing trading is basically holding a a stock for at least 2 weeks, up to 3 months. Sometimes can be as far as 6 months depending on how the market actually is.

Typically you can do it part-time You don't need any fancy technology or fancy screens. I I Pretty much use a smartphone and a computer that pretty much does it. and for the most part for strategies I Use a simple strategy which is just using the earnings, figuring out what the earnings estimates are which is free online sources. Yeah, and then just looking at what's happening around the world particular with that company and then decide if that's a Nega positive impact for that company over the next couple of weeks or months.

Okay, when you're swing trading, do you care more about the fundamentals? What the technicals or both? CU I Know in in day trading, at least you could theoretically only use technical analysis and never have to look at news. What about swing trading? So in swing trading, you're going to need a mix of fundamentals and technicals. Okay, the fundamental basically give you an idea of which direction you should be taken. And in the technicals, it's all about just timing it when it's the right time to execute that trade.

So if you're fundamentally bullish on something, then you look for like bullish patterns to enter your bullish you know, thesis. That's really cool to know. So basically essentially you need both sides to align for you to take a swing trade. Exactly.

Oh, okay, so what's the strategy you're going to show our viewers today? So this strategy is called an earning strategy and essentially you just need three things for it. Essentially, you just need a thesis, Then you also need to know what the company's estimates are for that, and then all you're going to do is just make a conclusion as to where this is a positive or negative impact for the company. Okay, so for this earning swing strategy, uh, what are some of the criteria you look for when you're looking for? uh, and selecting stocks to trade for this kind of strategy? So typically when I'm looking to pick a particular company, the difference a little bit is that in day trading, you tend to go for the stock first and swing trading you actually tend to go for the news first. Oh, very interesting.

Okay, so with the news I mean there's so many free sources you have Yahoo news? Um, you have MSN You have Bloomberg We have Finis, which is also another free resources and you can also go there and just look for like what's happening around the world and just pick um, particular news topics that actually have something to do with a company. Okay, so you said you use a lot of free news resources? Uh, is there a website that you prefer to use? Absolutely Msn.com All day. Okay, so now that you're on Msn.com how do you look for a particular trade you want to trade? So when you're on Msn.com and it can feel overwhelming at first, all you're looking for just scrolling through the article and see if there's any news article that's actually out there that actually impact a company. So for example, we have one here that says what the CDC says about the updated coid vaccine.

So right away you can start to think about your vaccine companies like your Mna, your fiser and and your No Novac as well and see how that's actually going to impact the company over the next couple of months. So you essentially read news on all these free news websites and then think about okay that can affect the specific sector or industry whether it's bullish or bearish. and you think about the companies that's involved in that sector exactly. Oh okay, so you kind of have like a top.

Is it what's it called? Top down approach? Top down approach? Yeah, yeah, yeah, yeah. okay okay yeah. so Oren I Know you also mentioned that you need to know the earnings estimates. What kind of tools online do you use to find out those uh resources? So Shay on the one thing benefit of Swing trading is that most of the stuff that are used for sing trading are pretty much free.

That's amazing. So there's Zach.com Most of the experienced Traders are familiar with that. There's Nasdaq.com and there's also Marketwatch.com The one that will be using today will be Zach. So on Zach.com all you'll be looking for is actually when you go to the top, you type in the stock that you're looking for, you go to your earnings calendar and then you look for their actual uh, next estimated earnings in this case for UPS The next one is actually August 8th, 2023 which already has passed and the estimate for that one was actually $2 51 and they reported $254 So as I mentioned, one of the free ones that I like is Ms.com but there's also Nbc.com as on this one particular one we had one about UPS workers approve new contract with hardfought pay and safety gains and India strike threat.

Yeah, so earlier this year UPS actually had a Uh strike that was pending and it turns out that this would actually be a negative for the company. Okay, at the time, they had huge estimated earnings. Oh, and this actual increase in pay would cut into their actual profit because they're raising their expenses and therefore the estimate for the forward future that the Wall Street have predicted would actually get cut down a little bit lower. Okay, which means it's a negative impact.

So that's how you found your thesis for a bearish uh scenario. Exactly Okay I See Okay, so now that or has determined the stock that he's looking for a bearish thesis, now he's going to look for uh, potential analysis entries. Etc on the chart. Uh, you can take it from here.

So on the weekly chart for UPS Um, is there a reason you prefer to use the weekly chart? So I personally look at charts a little bit differently. I Think if you're doing a day-to-day scenario, then you use your daily chart. If you're doing a month-to-month scenario, then you use your monthly chart. If you're doing a week to We scenario: you use your weekly chart.

Being that during this time, the market was a little bit volatile, so we were actually looking more on a week to week scenario, so we picked a week chart. Okay, all right, so on the weekly chart, what I'm particularly looking for is essentially being that it's a bearish sentiment. What I want to look for is more of a short technical setup. Okay, right.

and the thing about a technical analysis for string training is that it's a lot more simpler than your other strategies because you're only using support and resistances. nothing more. I See, Yeah, it's especially simpler compared to day trading. Yeah, it is a lot more fancy strategies.

Yeah, like you need to care about price Action Level two. but with swing trading, right? Do you need to look at level two at all? No, not at all. strictly just the chart. Yeah, that's why it's more.

it's better for passive or part-time Traders it is. so on. This, what we're looking for essentially is a resistance point. So during September on Monday Uh, September 12th, 2022 Um, UPS actually found a resistance point right around the 100 area, then eventually sold all the way off down to the 157 area, then eventually kind of held resistance around the 19250 for a while, eventually peeking out to the 19755, then eventually it sold off all the way to about 16937 and then a little bit further down to 16655.

So what I' be looking for most likely you know, is a rebound into that actual resistance point to execute a short setup based on my bearish fundamental um analysis. I See So Eventually, later on that we've executed this training humble Trader Community You remember that we actually rebounded into that actual Zone which a lot of Traders actually took that trade and eventually it sold off down to the 16922 16640 which would become your takeprofit area. So your entry points around this area and you're trying to cover down in this particular area area. but it went much further than we anticipated.

Later on to 15448. Yeah, like I can see here like it also broke down down this 200 SMA and once you crack that on the this weekly chart. Oh so and once that cracked, this all went all the way down to 150s. Which which area did you end up taking profit back up here? So we actually end up taking profit like little little chickens.

So we took profit Actually around1 17290. Okay, but where was your entry? Our entries was actually in the 192 70s and even some more in the 1883s. Nice. And how long was the kind of duration of you holding that swing position short? So this is actually just for 3 weeks? Oh, just for 3 weeks? That's like an eternity for a lot of day.

Traders Like me, I'm like 3 weeks. Wow, that's a long time. So I think you mentioned your entry short area at Resistance essentially. And then you buy at support so you have your entry and your price.

Target How would you manage your risk in this particular example? So with risk managing for string trading it can get simp and you can also get very complicated. but I'll make it simple for you. Okay, good, good, please make it simple So unlike um, day trading where you're you're looking for single position wins on each trade you take. Yeah, when swing train is a bit different.

Okay, so you're not just taking one position and getting tied to it, you're taking five or 10 of them. Oh I See, So your goal is actually to be right on on at least half of those positions. Okay, if you're really good and you can get there and then the the the negative or positive outcome of the entire sum will actually determine what your profit actually is. Oh I See yeah.

so if you take 10 positions and you add them up and you're up $1,000 and you're up $1,000 on this. Okay, so earlier you talked about entry which is at Key Resistance around 192 is 192 and 193 and your profit Target is around 166. Um, that area. So now we have the entry short and your profit.

Target Um, what about your risk management like? which? What's your risk like and your risk award in this particular trade? So in this particular trade, the risk management is actually 1 to three because you be placing a stop-loss about 200 just so it's safely above the area of resistance. Just prevent yourself from being stopped out a little bit. Then on the downside, you have about a 25 points drop. So if you do the math you get a 1 to three or to which is pretty good for one trade.

Yeah, that's pretty good. Okay, so essentially if we're talking about shares uh, points per share, the risk is about $3 per share and the downside is about 25 points. So that's actually really, really good risk. word for this kind of Swing Trading strategy.

Obviously like, you know what's the minimum you're looking for. so particularly minimum for me when I look at trades I'm always looking for anywhere from Five Tech 5x, at least 10x and I think since um, it is a swing trade, you have like a longer time Horizon to let it work, stocks tend to Trend right? so once it does go in your direction, you get like a huge flush out. like this one flush. So all right, you know that I'm mostly a day trader I am familiar.

Yeah, yeah, I swing trade once in a while, but not a whole lot. So how would you compare swing trading versus day trading? Like what's the advantages over day trading I would say the advantage over uh, swing trading in general speaking will probably be the cost of the buer to entry and the cost of Entry Okay, uh, day trading tend to be a very, very worth you know, versatile strategy, but it also can come at a huge expense. Like terms of Technology Oh, I See, So most of the sources that are used for swing trading are pretty much technically free like we use a lot of free resources here, right? The other Advantage as well is that not many people have the ability to be in front of your screens each day at a certain waking hour of every day, right? They have jobs, they have kids, they have wives, husbands. They don't have that time and luxury, so string training allows you the ability to.

Basically, you can work on your own time because you can do your research whenever you see the time available to you. Then you can then determine what is the right time to enter that trade and that could be in the morning. It could be afternoon. It could be a couple days later or a couple weeks later.

I Would also say the buyer in terms of capital is also a lot more lower and the thing is that you don't need to spend a lot of time practicing. I Would say executing is practicing when it comes to swing trading because you have a lot more duration at the time. Yeah, and there's also like the in the US there's a PDT rule right? so that that kind of blocks a lot of people from day trading every day. And and when you're swing trading, you don't have to worry about that.

You don't worry about PDT Rule And in fact, when you're day train as well, you have to worry a lot about which Brokers you choose for. if you're short selling, that's a really good point. Like shares to short. where to get the long? The best fees With Sing trading.

some banks even allow you to use use their own uh, brokerage accounts. You can even use that so there's nothing creative. You know. even Robin Hood works.

Yeah, you can use a commission free Brokers uh to swing trade as well. It's very, very, uh, cheap. I'll Also s benefit of Swing trading too is that unlike with day trading where you know you take a position on you're trying to make a win, particularly on that particular trade, you have the diversity of having multiple Sing trades as well. so you're just looking for the sum of the actual outcome of all 10.

So what kind of broker do you personally use for swing trading? I would say E Trade is my all-time favorite. We've had them for years and we haven't changed them since. Oh okay, so use E Trade And then the rest is just the free uh websites that you talked about today pretty much. And in terms of Hardware as well, um, particularly with day trading, you need a lot of screens for we all see sh screen.

it's not Che particularly for me I have a surface for a smartphone and that's pretty much all you need. just just this on the phone. That's all you need that. Any tips for our viewers watching this who want to step into Swing trading? Um I'll say that swing trading? is also not bag holding.

Yeah, and it's also not long-term investing right? right? Yeah, it's a trade. It is a trade just like any other trade, right? If you'd actually do like a day trade but just like a longer duration for that. Yeah, and it's not B back holding. You have to respect your stops and follow your risk management plan just the same.

Yeah, just because your risk is not wider doesn't mean you keep B holding it uh, all the way down to zero. Exactly. Yeah, you just learned a very simple but powerful swing trading strategy from Oren today. But this dude over here also day trades I do Yeah.

Is there anything you cannot do? Can't think? Okay, nobody asked I Thought you were going to say something like I don't trade Forex or like I don't trade crypto. But seriously though, I actually don't day trade Forex at all. No crypto either. No crypto.

Okay, um, but you can teach our viewers some day trading strategies as well. Great. I Absolutely can. Oh okay, so if you guys want to see a day trading strategy from or the famous breakout La strategy, make sure to hit the like button down below and hit the like button down below for real.

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