Swing + day trade /Jan 18, 2019/

Updated: Dec 8, 2019

You can have a combination of swing and day trades when markets struggle on large time-frame inflection points. This is what works for me, and that doesn’t mean it will work for you. Everybody must tweak a strategy to fit to own personality.

There are no swing trade opportunities every day. But when we do have them, it is a good way to either make more, or to mitigate loss from a swing trade, using day-trading and to "trade around a position". You can do that with success, ONLY if you are not biased. If you ARE biased, then you could then by day trading just add to a losing position in revenge trades.


Here is an fresh example: I had a swing SPX short. My entries was at 2585 on Jan 11 and 2595 on Jan 15. I usually enter swing trades partially – scaling in. I will put a "scout" that front run the zone as a first 1/3. If I feel heat on that, I will add another 1/3 on “better price” and wait. If it still goes against me, I will do nothing but wait. If I am stopped – so be it, on 2/3 of the position. /I was stopped at 2636/. If price turns in my direction, and trade is in profit, I am adding last 1/3, and could add more as it goes, and IF there are potential for more. So I will add to a winning position and increase my initial risk. Scaling in – scaling out.


While that situation develops, I will day-trade it also, both directions. Like yesterday, when we had a clear-cut long setup on SPX on smaller time frames. Retest of that broken R that was acting like support, and a move started at EU open. So you can expect a large move to the downside, using a large stop, but still take a 15 pointer long trade (more was on the table, but I took 15).

Same goes for DAX today. I have no swing position on it. But people that do have swing shorts, are probably still IN, with stops above 11,100 maybe, and they could also buy this break above 11k as a day trade.


So, “trading around the position” can be a way to hedge it, but it also can be a way to ADD, if the market goes your way. On swing position you will ignore smaller pullbacks and look on higher time-frame charts, while you can always additionally day-trade the same direction. IT REQUIRES A MOVE. There is no need to do this in a range.


All of this is not something for beginners to do, but developing traders can do that. Even on the same account, using futures for day trades and CFDs for swings, or the other way around.