Beginner Swing Trader Outperforms Market with 4.66% Returns
Swing Trading for Beginners: Generate a 4.66% Return with "F"
On July 5, 2023, something extraordinary happened. "F", a popularly traded equity, charted an uptrend for the third consecutive day. For the uninitiated, three straight days of growth in the stock market is a positive sign, often viewed by investors as a harbinger of bullish performance.
It's a bit like a stock market adage: "Three straight green days could possibly pave the way for a bountiful month." This saying is based on empirical evidence that indicates when "F" has risen consecutively for three days, the stock has further advanced in 192 out of 293 instances within the following month. This means that the odds for a continued upward trend are approximately 66%.
So, what does this mean for the average investor, particularly for those who are just dipping their toes into the thrilling waters of swing trading?
Swing trading is a form of active trading where the trader attempts to capture short- to medium-term gains in a stock over a period of a few days to several weeks. The goal is to exploit the stock's price momentum, and the three-day upward trend in "F" provides a perfect opportunity to illustrate this strategy.
Let's assume, as a swing trader, you had identified this three-day uptrend of "F" and decided to invest. Based on historical trends, there is a 66% chance that you will witness a further rise in the stock's value in the coming month. The return generated from this swing trade could be substantial. In this case, "F" offers a potential return of 4.66%.
That's right, 4.66%! In the world of investment, where bank savings accounts often deliver less than 1% annual return, a 4.66% return in potentially under a month is an impressive result. This serves as a testament to the potential of swing trading as a viable strategy for beginners to gain significant returns, especially when they can spot and leverage trends like this three-day uptrend in "F".
It's important to remember that while historical data can provide insight into potential future trends, it does not guarantee future results. However, it does allow us to analyze and understand market patterns better, assisting beginners in making more informed decisions while exploring swing trading.
As a beginner, it is essential to observe and learn from these market trends and patterns. The journey of becoming a seasoned swing trader is filled with similar instances where spotting the right trend at the right time can yield substantial returns. "F"'s 4.66% yield on a three-day uptrend is a perfect starting point to comprehend the swing trading concept and its potential benefits.
The performance of "F" is a lesson in seizing opportunities, demonstrating that with careful observation, timely action, and strategic patience, swing trading can indeed become a rewarding investment strategy, even for beginners. With the right mindset and the ability to identify promising trends, any beginner can thrive in the dynamic world of swing trading.
F's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for F turned positive on October 10, 2024. Looking at past instances where F's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 14, 2024. You may want to consider a long position or call options on F as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
F moved above its 50-day moving average on October 09, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for F crossed bullishly above the 50-day moving average on October 16, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where F advanced for three days, in of 307 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 10 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where F declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
F broke above its upper Bollinger Band on October 16, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.235) is normal, around the industry mean (6.019). P/E Ratio (12.306) is within average values for comparable stocks, (18.031). Projected Growth (PEG Ratio) (0.785) is also within normal values, averaging (5.553). Dividend Yield (0.045) settles around the average of (0.043) among similar stocks. P/S Ratio (0.305) is also within normal values, averaging (76.807).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. F’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to slightly better than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of automobiles and trucks
Industry MotorVehicles