In terms of technique, trading is very simple - a trader buys a cheaper asset and sells it at a higher price, or vice versa. There are many trading strategies that differ in their approach to market analysis, entry point selection and position management.

Swing trading is the best strategy, which does not require you to be constantly sitting in front of the monitor and allows you to earn good money. Go ahead, have fun trading!

Swing trading and how does it work in Malaysia?

The notion of swing trading originated quite a long time ago. The technique was described in the 1950s by J. Douglas Taylor and created his strategy based on 3-5 day market cycles. Later his ideas were extended. Today, most traders use swing trading strategies. Basically, swing trading is not a specific trading strategy, but a general name for a tactic, a model of trader's behavior. Indicators, levels, graphs and candlestick patterns are just tools to detect a point of entering the market, they are chosen individually.

The essence of swing trading lies in using price change for gaining profit. In this case an open position is held for a short period, on average from a few hours to two or three days.

Choose your strategy
Choose your strategy

Swing trading in Malaysia requires experience in financial transactions and most importantly, stamina.

Swing day trading strategies have become very popular in stock market trading. This style of trading, where you hold a position for two to five days, gives you the opportunity to 'exit' if 'profits are ripe' and to 'stay out' in case of spikes in price movements. Active investors use swing trading to limit risk in the market when times are volatile. Finally, this approach is attractive to many people who do not have time to trade intraday but want to take advantage of opportunities to make money when opportunities arise.

Swing trading strategies stocks are strategies which focus on taking smaller profits in short-term trends and reducing losses more quickly. The profits may be smaller, but they are compounded and give excellent returns when they are in constant motion. Swing trading strategies stocks in Malaysia should be applied to the stocks you are interested in to find possible entry points into the trade.

Trade volum

The trades in this strategy are relatively short-lived, the trader's position must be able to withstand short-term trend corrections. This strategy does not imply the use of large leverage.

Entry points

An entry point is the moment of a trend reversal, the appearance of a new trend in the market. Usually this reversal is triggered by some strong news. To predict the change of market situation you need to constantly analyze the situation. A trader should be able to find out the news, which causes a prolonged trend. A new trade should be executed only when the reversal is confirmed, in case the amount of movement against the trend exceeds the standard size of the correction.


Trade duration

Trades in swing trading are supported as long as they continue to make profit. It is better not to close profitable positions; the gained profit should be fixed by taking a take profit.

Closing trades

Trades may be closed manually or using stops. The reason for closing the transaction can be either the reversal of the trend, which has already begun, or the emergence of news, which will cause the opposite direction of the trend.

As you know, there are no perfect strategies. Like any other, swing trading strategies have their disadvantages and advantages. As for the advantages, it is important to note that this swing day trading strategy requires a combination of intuition and analytical skills to know what to do at any given moment: hold or close a position, sell or buy.

The benefits of a swing trading strategy:

  • A trader gets the opportunity to earn regardless of the general direction of the market. The ability to find the right trend, to see the profit potential of a deal, the trader's "sense of smell" makes it possible to earn in any situation.
  • Swing-trading is not connected with much energy and emotional tension.
  • In contrast to intraday strategies or scalping, the strategy may bring in really good profits.

Drawbacks of swing trading strategies:

  • Unlike intraday trading, swing trading usually uses larger time intervals, which means the initial amount of funds needs to be larger.
  • Starting from scratch with this strategy is rather difficult. Swing trading presupposes at least minimal experience in order to determine the phase of the cycle the market is in and the path of the trend. Without these skills, a trader is unlikely to be able to calculate potential risks and future profits.
Register, trade and make a profit!
Register, trade and make a profit!

Who is a swing trading strategy suitable for?

The swing trading strategy is not suitable for everyone. Even a very talented and successful trader can fail this strategy and get no benefit from it. Swing trading is suitable for those who: 

  • Is patient enough to hold a trade for several days.
  • Prefers to make money on good trade sets, rather than the number of trades made.
  • Has large stop orders.
  • Keeps calm even if the trade is not in his favor.

If a trader prefers fast and active trading, wants instant results, is nervous and cannot give several hours every day to analyze the market situation, then swing trading is not for you.

The goal of swing day trading strategies in Malaysia is to open and then hold a trade as long as the stock moves with a definite positive or negative momentum. When the price shows signs of a reversal or correction, this is the signal to close the trade. This style of trading is predominantly used on daily charts. 

Follow these swing trading rules and you're sure to succeed!

  • To enter the market, it is best to prefer a medium-term trend in the initial growth stage.
  • A proper entry into the market is characterized by an immediate start of growth of your position in the direction of profit.
  • If you have not yet reached your target and are still taking profits, the position should be rolled over to the next day.
  • If the position is making a loss, it is best to close it as soon as possible, so you can open a more profitable trade.
  • If you can make more profit than you expected, take what you can.
  • Even if the position is a small profit, get out at the first sign of stalling to minimise your risk.
  • At the same time, be patient and do not close a trade prematurely.

If a trader can understand all the peculiarities of swing trading, invest time and effort in perfecting his knowledge and skills, analyze the market and its dynamics, then swing trading can bring high returns and success to any market. Give it a try and you are sure to succeed! 

How do I start using swing trading strategies in Malaysia?

Anyone who is not even well versed in the stock market can start making money with swing trading in Malaysia. The main thing is that you should educate yourself very well before you start so that you know the specific terms and indicators that may benefit you or harm you if you ignore them.

Registering on the investing platform
Registering on the investing platform

Once you have chosen a suitable broker, you need to register with the online platform, which is offered as a working platform for trading. This way, you will have access to all stocks of companies as well as market areas. You don't even need to leave your home in order to register and fund your account. Everything happens online - you register on the website, fund your account with VISA, MasterCard, etc. and buy any securities.

How to open account
How to open account

To get access to the stock market you need a considerable investment. Not every willing trader has such funds. However, thanks to dealing centres, which act as intermediaries and provide a loan to traders, trading has become available to everyone. Thus, the essence of margin trading is conclusion of transactions at financial markets with attraction of borrowed funds provided by brokers. The second name of margin trading is trading with leverage. Leverage is the ratio of your own deposit to the amount of working lot. 

To receive leverage, it is obligatory to have own funds in the trader's account. The minimum of the initial deposit varies and depends on the requirements of a certain broker.

After registering to practice swing trading in Malaysia, you can open a demo account. Almost all brokerage companies today offer the opportunity to open a demo account. A demo account is able to teach you how to trade and recognize trading signals, set up a chart and expose indicators, etc. It is also a great place to practice any technique.

Proper preparation will go a long way in getting you off to a good start. Take control of your financial future now!

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