The swing traders consider themselves often as the happiest of all traders. Prices go up and prices go down and they make money all the time. But this is an illusion. One that could become quickly expensive.
In a market that produces smooth swings, swing trading works exceptionally well. Unfortunately this is the wrong criterion. The same could be said about trend trading. If the trend runs smoothly with no meaningful pullbacks or swings, it is easy to trade. Similarly an investor could buy cheap and if cheap means that the price will sooner or later go up that method works also as expected.
All trading or investing methods work in ideal situations, but the real world presents itself differently – real and not ideal. So, swing and trend trading need some smoothness, the perfect chart pattern, but reality offers only random jitters and swings of arbitrary wavelengths laid on top of trends. Coping with that means accepting the probabilistic nature of the market. Consequently a successful trader has to put a probabilistic trading system to work.
A fine thing to have is some sort of software that automatically does the trading. It has not to be better than a human trader from a technical analysis point of view. Its advantage is that it is calm. In fact it is cool as an iceberg.
The human trader’s biggest problem is psychology, besides of having the right trading system. A trader has to balance his mood right in the middle of fear and greed, neither being optimistic, nor pessimistic. Only this neutral mood enables a realistic judgment. This is no problem for a trading program. Another plus of a software based system could be of course a lower work load for the trader.
The method of an automatic entry into a growth trend that we introduced earlier, could be mutated into complete autotrading with following all entry and exit signals, but only within trends. This way the results of the automatic trading should just become better.
A progressive trader has here only to select liquid and uptrending stocks and let the autotrader with its artificial neural intelligence do the rest. Trading becomes less stressful and the needed work decreases also. With using end of day signals instead of intraday hunting this semiautomated trend trading system may be something for the ultimate beach trader.
If you want to put work into it, being absent from the beach, all the better, put your energy into the selection of the right stock trends.