What is Swing Trading/Stock Channeling?
“Swing trading” and “channeling stocks” can be thought of as ‘short-term value investing’. It involves buying a stock that has a strong historical tendency to move between a support and resistance level. You buy the stock near support and sell near resistance. You then buy another channeling stock at just the right time to do it again ( or wait for the same stock to go back down to its support level and begin to rise). The quicker the stock moves from its support level to its resistance the better. You can hold the stock for a day up to several months or more. With our techniques, you generally hold the stock for 2-4 weeks to achieve a gain of 5-30% or more. Typically, swing trading investors are looking for at least a 10-15% range, i.e. the stock has moved upward an average of 10-15% before hitting resistance and moving back down in the past.
