Swing Trading: Holding Trades for Multiple Days

With several months of great January Effect trades behind us, many traders are concerned about opportunities as we head into the slower late summer period. Traditionally, we have seen E-mini volatility drop to almost untradable levels on a regular basis. When the market is too slow, it can stall and chop back and forth. That doesn’t make for good trading. There’s not much an intraday trader can do about it. Some traders prefer to taking the swing trading approach, which usually requires remaining in a position for several days, hoping for a profitable turnaround.

What’s the solution? That’s where the January Effect comes in. This strategy has you hold trades for multiple days (aka swing trading). Yes, this type of trading is not suitable for everyone, so check your broker and a trusted financial advisor. John Paul has seen winning trades over the course of two or more days in recent months. We’re talking big moves. Once you’ve established the January Effect exists for the year, the trick is to know when to enter.

Swing Trading Method Explained

The entry technique is demonstrated in this video. In short, he’s using the Fibonacci tool in an unconventional way. Only the 0%, 50%, and 100% values are plotted. By stretching the tool between two price values, it’s easy to see what halfway (or 50%) is. The halfway point is the entry. But where’s the halfway point? Remember that the January Effect says the market is expected to close higher in December. This usually means prolonged bullish periods. Of course, you’re going to get some bearish moves. After one of these downward moves, look for the recent highs and the low. Wait for price to retrace to 50% and that’s your entry. The video explains it much better, so be sure to watch.

John Paul can personally go over this swing trading technique with you and over 10 others in his personalized trading school. Mentorship includes all courses and software with lifetime licenses. He’s starting new classes all the time. In case you work in the afternoons, the one-on-one program can be customized to meet your schedule.