How could you increase your win rate (%) as a swing trader?
Here are a few tricks I personally use that can help you 👇🧵
Here are a few tricks I personally use that can help you 👇🧵
1. Trade with the market trend
Define the trend of the indices #ES_F #NQ_F #RTY_F and create rules to ensure you initiate new long positions while the market is trending higher.
• Price > 50dma
• 21dma > 50dma
• Etc, it's up to you based on your trading timeframe
Define the trend of the indices #ES_F #NQ_F #RTY_F and create rules to ensure you initiate new long positions while the market is trending higher.
• Price > 50dma
• 21dma > 50dma
• Etc, it's up to you based on your trading timeframe
2. Make sure the market breadth is confirming the index's move
Sometimes, the market underneath the surface is weak, so you want to ensure strong participation.
• Net new high/low (absolute/#NYHL)
• Advances/Declines (McClellan/#NYSI)
Sometimes, the market underneath the surface is weak, so you want to ensure strong participation.
• Net new high/low (absolute/#NYHL)
• Advances/Declines (McClellan/#NYSI)
3. Buying quality technical setups
You also have to develop a playbook with high-quality technical setups. You need to make sure these setups have an edge in the market and know when they are working and not.
Define it by:
• Backtesting
• Forward testing &tracking key stats
You also have to develop a playbook with high-quality technical setups. You need to make sure these setups have an edge in the market and know when they are working and not.
Define it by:
• Backtesting
• Forward testing &tracking key stats
4. Don't buy extended stocks
As you advance in both the bull market or even on individual stocks advance, the probability of a continuation after each pullback diminishes.
You want to ensure the stock proves itself, but not at the advance's end. It's a fine balance.
As you advance in both the bull market or even on individual stocks advance, the probability of a continuation after each pullback diminishes.
You want to ensure the stock proves itself, but not at the advance's end. It's a fine balance.
5. Track your trading performance
Why keep pushing and taking a lot of trades when you do poorly? Take a step back, scale down, and trade smaller & less.
Here's a trading journal that can help you do that:
Why keep pushing and taking a lot of trades when you do poorly? Take a step back, scale down, and trade smaller & less.
Here's a trading journal that can help you do that:
https://twitter.com/PrimeTrading_/status/1623360946801414163?s=20
6. Adjust your position management to the market environment
Sometimes, even if all the other points are there, the market is not cooperative, and you need to adjust.
• Sell in strength on day 1 or 2
• Buy deeper in bases before the more classic base pivot breakout
• Etc...
Sometimes, even if all the other points are there, the market is not cooperative, and you need to adjust.
• Sell in strength on day 1 or 2
• Buy deeper in bases before the more classic base pivot breakout
• Etc...
Obviously, there are more key concepts to implement in your trading plan to increase your win rate and overall performance.
But those are a good foundation that will put you on the good side of probabilities and help you improve.
primetrading.substack.com/s/education-se…
But those are a good foundation that will put you on the good side of probabilities and help you improve.
primetrading.substack.com/s/education-se…
Like everything in trading, you must be flexible, have rules, and find your comfort zone.
Remember, defense-first 🛡️
If you liked this thread, please like & retweet it! 💟🔁
Remember, defense-first 🛡️
If you liked this thread, please like & retweet it! 💟🔁
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