The Best 3 Investments for New Swing Traders to Invest in
by Andrew McGuinness Jul 16, 2019
As a new trader, it is likely that you have been feeling lost and confused. As a novice in any field, these feelings are inevitable. You may be unsure of whether the stocks you have chosen are worth your investment or whether you’ve risked too much. If you are a new trader, rule 1 in trading 101 is to accept all forms of possible guidance from more experienced traders. Here are the best three stocks professional traders would advise a beginner swing trader to invest in.
1. Facebook
Facebook is an ideal investment for new swing traders. This is because their highs and lows are fairly easily predicted through a 50-day movement average. In order to find this average, a line may be drawn from one low point to all of the others. This is called the bottom trend line. If you time your investment well, you will be able to take a plunge when the stock is at one of its fairly low points, and watch as it inevitably raises within a short period of time.
You can do the same for a stock’s high points. When the stock begins to hit a point close to one of Facebook’s greatest highs, you will be able to predict the incoming decreases the stock will suffer. It should be kept in mind, however, that these trends are only able to guide you so much in predicting future trends.
They are good estimations of what is to come, and what patterns may appear in the future, but they should be combined with a certain trading know-how, as well as an awareness of other influences within the market. Remember, every investment involves more hope than assurance, and assumptions rather than guarantees.
2. Microsoft
Trading with Microsoft is very similar to Facebook trading. However, measuring the nearly 2-month average is not as predictable and clear as it is with Facebook. Rather than relying on these patterns, you would be better off taking these patterns into account while going with your gut feeling. This is, of course, upon becoming familiar with the market and Microsoft’s trends.
Once you are able to get a good feel for what’s to come, trust your trader instincts just as much as the 50-day movement average observed. In order to make the best investments, it is necessary to combine both instincts and past observed patterns when trading with Microsoft.
3. Apple
In order to trade with Apple successfully, traders will require a bit more expertise and care. As you may have seen and heard, the last 10 years have allowed Apple to enjoy heights it had never seen before. This is thanks to its most popular and hyped iPhones released each year, as well as iPads and top of the line Mac computers.
Despite the fact the Apple stock has been increasing steadily, its stock patterns have changed considerably since November 2016. Therefore, there is now a new trend that the stock is following. Trends that have developed over time and proven themselves to be consistent and steady may be used as determinants for the future. New trends, however, that have not had enough time to prove themselves and illustrate stability, should not be relied on whatsoever. In other words, these new trend patterns that Apple has been displaying only recently should not be a determining factor for your investment. A better determinant for Apple’s future trends would be the news, new product launches in particular.