Swat Trading Challenge its Swat Goal set every year.
For 2019: Start with $3.5k and hit $100k cash into Savings Account
- Use Cash Account so you will not have day trading limitations
- Amount per trade: $1,000 (or 150-200$ for “Lotto” trades). IF Swat buys more or less than $1,000, he will notify how many contracts he is holding. Otherwise, assume default $1,000 per trade
- Swat considers -15 to -20% Stop Loss (or lower, as is set case-by-case)
- Maximum 3-4 trades per day
- Trade from Monday to Thursday (no trading on Friday’s)
- On Thursday end of day, Swat moves profits into Savings Account so each week he starts with $3.5k on trading account.
- Swat priority is protect gains, so usually he does not hold any position overnight.
- Read more about “Stop Loss and Risk Management”
Please note, this is Swat Strategy suggestion, but each trader decision to risk more or less and each trader responsible to manage own account.
Swat developed his own Risk Management strategy during the last 10+ years of trading. Some key Swat takes:
- Never use “Market orders”: Swat always use “Limit Orders”
- Avoid “Hard Stop Orders”: when Swat is in front of computer, he NEVER uses Hard Stop orders. He always uses “Mental Stops”, so he manage position and if see trade going against him, only than he will set a Limit Order and cut losses. Swat only uses Hard Stop Orders when not in front of pc.
- Cut Losses and Move into next trade: every trader has losses but the secret is implement risk management strategies, cut losses, focus and move into next trade
- On wide bid-ask spreads, Swat usually set limit order a little above middle price. Per example: Bid = 2 and Ask = 4, so Middle price = $3. Swat will set limit order to buy at $3.05 or $3.10
- Ask yourself “How much am I willing to risk and lose?”
Lets say, you invest $1k per trade and your maximum risk is 300$ loss on that trade. You have some alternatives:
- Invest $1,000 per trade and stop trade for -30% loss or
- Invest $600 per trade and increase stop for -50% loss or
- Invest $300 per trade and let trade run
In All above situations, your maximum loss will be only 300$ per trade.
Ask yourself which strategy you prefer to use and stick with that strategy.
No, you do NOT need $25k in your account to daytrade as that only applies for Margin Accounts.
Please contact your broker and ask to change into CASH ACCOUNT.
Wish Cash Account you dont have daytrading limitations and can daytrade as much you want and while have cash on account. Money settlement overnight and next day can start all over again.
(For reference, ETrade and TD Ameritrade both have Cash Accounts)
Swat trades Monday to Thursday from 9:30am EST up to 4pm EST (no trading on Friday’s).
Swat will share his own trade entries and exits directly on SwatOptions App.
SwatOptions App is available for Mobile (iOS and Android) and Desktop (Windows and Mac).
SwatOptions App is connected to Swat Broker via API, so everytime he OPEN/CLOSE a position, you will be immediately notified
As part of “Swat Challenge” service, you only receive:
OPEN – Swat will let you know when he bought contracts and open new position with “Open Trade” alert. You can get into the trade on this post or not. Always each trader decision and risk!
TRIM – Swat will let you know when he start taking profits and reduce risk with “Trim Position” alert. Swat suggests start taking 1/4 or 1/2 position before closing all trade. You can lock some or all profits on this post or not. Always each trader decision and risk!
CLOSE – Swat will let you know when he sold all his contracts and closed all position with “Close Trade” alert. You can lock some or all profits on this post or not. Always each trader decision and risk!