Are you working full time and have limited screen time?
Are you overwhelmed with the adrenaline rush and the speed of day trading?
Is Day trading too stressful and you are looking for a more relaxing way to trade?
Then, you may want to consider swing trading. In this blog, I’ll share my BEST swing trading strategy and how you can profit just like I did from trading Inovio Pharmaceuticals; $INO.
What is swing trading?
Swing trading is simply buying and holding a stock position over multiple days. Usually, the time period is between 1 day to a week and sometimes 1 to 3 months. If you are under the PDT rule, this is also a great style of trading, to begin with. This type of style is very popular among hedge funds like Goldman Sachs, where their time horizon is between 1 to 6 months. Therefore, if you always wanted to trade like one, you are reading the right blog.
What is a strategy for swing trading?
A swing trading strategy isn’t like a day trading strategy where there is a set of guidelines, rules, and checklist to follow. While day trading is rule-based, swing trading is a process base. This means swing trading follows a process. The process is used to conclude why a particular trade is worth taking and when.
Here is a list of popular swing trading strategies among funds.
- Fixed Income
- Global Macro
- Short Selling
There are many more such as Event-Driven which is my absolute favorite and the one I use today. An Event-Driven swing trading strategy focuses on predicting events that may spur or derail a company’s future growth. There are many different types of events such as,
- Clinical trials
- GDP announcements
- Interest Rates
- And much more
Where to find swing trades?
While some large firms that use event-driven strategies focus on every single event, it would be extremely overwhelming for a retail trader to do that. The event I focus on is earnings as it’s the most important event which provides lots of volatility, momentum, and volume to trade. With my primary focus being on earnings, this means, I am always searching and in tune with situations via reports and scans that may spur or derail a company’s future earnings growth. [Get access to my next swing trade]
My recent swing trade was Inovio Pharmaceuticals, $INO which is a biotech company that focuses on the development and commercialization of synthetic DNA products for treating infectious diseases.
They recently received $71M in funding from the Department of Defense to develop a vaccine for COVID-19 and the stock began breaking out over 17.05/share which alerted my attention.
My analysis was, with the unresolved cases of COVID-19 due to the lack of vaccine which is yet to hit the market, the market share is still there for the taking. With the global market for COVID-19 now at $5.2 billion, this provides a huge revenue opportunity for $INO should the studies become a success from utilizing the funding from the DOD. $INO could potentially sell millions of units to the untapped market which would spur growth in their earnings.
With larger firms snapping up shares indicated by volume, this led to me going long 18/share risking the breakdown of 17/share.
I later sold half of the position at 22.70/share and another ¼ of the position at 22/share. I then exited the full position at 29.40/share.
The stock later hit a high of 35.22/shares so obviously, I sold too soon which is okay as you can never sell at the exact top. but, was an awesome swing trade.
DISCLAIMER: Humbled Trader Inc. is NOT affiliated with Inovio Pharmaceuticals and this blog is not intended to promote Inovio Pharmaceuticals nor has Humbled Trader Inc. compensated to do so. This blog is intended solely for educational purposes ONLY.