Answers

What is Swing Trading?
Swing Trading falls right between Day Trading and Investing. We trade the gap that is left between the trades that day traders do not want to take and Investors can not handle. That means that our trades can last from few hours to few weeks. This type of trading offers the most flexibility.

Is there a free trial for the newsletter?
We believe in dedicating 100% of our time to our paying clients, we believe they deserve it. Other companies dedicate 90% of their time to people on free trial. We believe that any serious trader would rather do business with a company that pays attention to them. For that reason, we no longer offer a free trial period. shoguntrading.com is the one of the BEST swing trading newsletter on the net, well worth the price.

We are the only service out there that puts up EVERY trade we have ever recommended on our site, maintain our consistent performance and show a sample of our service. Very few services out there report their performance. That eliminates the need for a free trial.

Entry on gaps - What happens if the stock gaps up or down beyond the specified entry price?
At times, stocks will gap above or below our entry point. A gap in the direction of our calls confirms strength and it is usually a good thing. Because the gap increases the distance between our entry point, stops loss and the actual entry point, it increases our risk and decreases our potential reward. For example, a LONG call at 20 with a stop at 19.80 and a target at 23, has 3 points potential with 0.20 risk. If the stock gaps to 20.50, our risk becomes 0.70 and our potential is down to 2.50. Because of the increased risk and decreased reward, we suggest trading half the shares you planned on. If you planned on 1000 shares, trade only 500 at the open. If the stock keeps going up, double your position. If the stock breaks below the low of the day, exit your position.

Another way is to wait for thirty minutes after market open to enter your orders.

Orders as GTC or day only?
We believe in not exposing ourselves to undue risk. Keep your orders as close to you as possible, therefore avoid GTC orders.

Are the trades updated? If so, when and how?
Trades are updated in our update section in the newsletter every night. We suggest updated stops and profit taking points.

How much capital should I start with?
You can start with any amount you want. It all depends on your goals and aspirations. Current day trading rules require you to have at least $25,000 in your account in order to day trade.

How are trades called and traded?
All calls include an entry point, a stop loss, a target, a chart and comments. Trades are entered when the stock breaks our entry point and triggers trade. On breakout, stops are moved up to follow the stock. We use trailing profit stops for exits.

How do we know when to exit?
We exit all trades in three stages, one third at a time. For example, if you trade 1000 shares, you exit first 400, then 300 and then the last 300. First stage should be exited as a scalp, around 2% profit, to cover costs and possible stop loss. This really helps with capital preservation. We suggest moving your stop to break even at this point. The second stage is loss of initial momentum, usually around 4% profit, the moment that you feel the urge to exit. This is used to build confidence, take some profits and allow you to take advantage of the full trend. The last stage should be exited as close to change of general market trend as possible. This last stage will allow you to capture maximum profits. This system of staggered exits allows us to preserve our capital and maximize our profits at the same time.

How about stops?
We follow a very simple stop rule "We exit a trade if it is not doing what we expected it to do." If the reason for our entry no longer exists, we exit. That means that if we are buying a breakout and the breakout fails, we exit. For that reason, as soon as we have minimal profits, we always move our stops to break even. This allows us to preserve our capital. Capital preservation is always more important than capital appreciation.

How about re-entering a trade?
We keep our stops very tight and at times will exit quickly. If the trend is still in the direction of our call, we will consider re-entering the trade. We would rather take many break even stops than one large devastating stop loss. Because our entry points are so accurate, we have great success at re-entering our trades. The goal is always to take advantage of the trend. If the trend is healthy, we need to get back in it.

Two points for re-entry, one at the original listed entry point and the second one at the high of the first attempt. If you were stopped out of a trade, the high of that move becomes your new entry point. It is the extra confirmation that the trend is on. The first entry point may not have been correct, but second one will be better.

Can I use Options with this service?
All of our stocks are scanned for volume, liquidity and price. We only trade highly liquid stocks that trade between 2 dollars to 100 dollars a share. Most of our stocks are option able. If you want to trade options based on our service, we suggest first reading our article about options.

What tools do I need to get started?
Basically, you need a good direct access broker. The broker will provide you with charting software, level 2 capability and direct access execution. Beyond that, you will need a strong reliable computer, not necessarily the newest and fastest, just reliable. The more screens you have the better. You may want to setup a multi-monitor computer.

Do you offer managed accounts?
At this time, we do not offer managed accounts. Our services are geared towards helping traders become better traders by providing education and picks, not trading for them.

How about auto-trading?
We highly recommend against auto-trading at this point. The way systems are setup now, they expose the investor, you are no longer a trader, to much risk and inefficiency. We believe in hands on trading, not automated trading.

Can I use the Swing Trading newsletter for part time trading?
Yes, you can use our service if you are a part time trader. During longer term trends, you can just set up your trades in the morning and let them work during the day. During tighter markets, when the market is in shorter term trends, you will have to either stay out or actively manage your account. It all depends on the speed of the market.

Do I follow your trading or am I responsible for my own decisions?
Our services are geared towards helping traders become better traders by providing education and picks, not trading for them. Our service is not a model portfolio, it is a research and education tool.

When is the newsletter posted on the site?
We try to post the newsletter on the web site on a daily basis at 10 PM Eastern standard time.

What skill level and amount of time do I have to have to use the Swing Trading newsletter?
Your skill level when you get started may vary, but you will learn very quickly. You can start as a completely new person or as an advanced trader. All will benefit.

If you are serious about trading, you will take your time and build a solid foundation. Our trading guide, which you will receive when you sign up, is a great place to start.