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The following are a few scenarios to watch out for in swing trading:

· Use S&P 500 Index for Starting Point - Watch the index for trends each day, marking the pivot points, and viewing various charts for several perspectives. Be especially attentive during the last hour of trading each day.

· Target List - Create a target list of possible swing trades with a significant risk-to-reward ratio. Begin your search with the S&P 100 and the NASDAQ 100 indexes. Then cross-reference your choices from various charts and narrow your list even further. Be patient and don’t force patterns on your tired and weary imagination. Real trends will be obvious as you go through your search.

· Chart Trends - Keep consistent charts on recent plays and various trends, noting any gaps, all averages, resistance levels, and critical pivot points. Include daily charts for technical keys that are specific indicators of averages on the move.

· Remember Key Fundamentals - Be on the alert for news with impact in the media that may boost or drop previous trends in the stock market. Stay objective and while you estimate and try to predict the fluctuation effects.

· Exercise Discipline & Patience - Set an entry point and a loss point and stick to it. The idea is to minimize your losses, preserve what you have for tomorrow’s exchange, and to eventually win when the time is right. This is more of a mindset than anything else, but because you are in control of your market actions and choices, and no one has to know your intentions, it’s very easy to change your decisions. Don’t succumb to the temptation to waiver in your preset decisions. It not only puts you on an indecisive track, but undermines your trading confidence.

· Ignore Greed - Even if the stock you are trading has moved in your favor, you haven’t made money until you have officially closed out the trade and completely eliminated further risk of loss. Remember that a small win is better than any loss. Again, exercise discipline in cutting your losses before they grow worse by waiting for an upward trend that might not happen, or for confirmation that it’s all over.

· Scaling - Trace the stock as it moves forward in your favor, similar to trailing succinct pivot point stops. Be proactive in protecting your losses, not reactive when it’s too late. In other words, it’s better to be defensive than to suffer heavy losses. This requires exiting the trade if you are on the losing side and unsure of which direction the stock may charge.

· Overnight Positions - Since swing trades generally last over the length of several days, often it’s necessary to stake a position overnight. Stocks even change overnight, so it is in your best interest to not close the day on a losing trade or with a particularly high trade with a large percentage share. You need to leave room in either direction for market gaps and unexpected reversal trends.

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