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Hi everyone and welcome to our new forum on swing trading. As you likely know, swing trading involves taking positions in a stock or other security and holding that position for as short as overnight to days or weeks or even longer. If you are new to swing trading and want to learn more, reading Brian Pezim's book "How to Swing Trade" would be a good starting point. It is available on Amazon. We expect this forum will be used by our members to present and openly discuss swing trading opportunities. The one advantage of swing trading is that the trader has the opportunity to slow the decision process and plan their trades without having to make a quick decision on whether to enter a trade. Thanks in advance for being part of this forum and we hope this forum can offer up some profitable opportunities for our members.

Hi All, Is there any way to manage risk in an overnight swing trade using stop loss or some other mechanism? Any specific order type available that could stop out from a position during pre market or aftermarket sessions (including gap up/down)? Some trading script linked to IB\fix or TD running on 24/7 monitoring price can close position? I'm new to swing trading so trying to figure this out - any advise would be appreciated.

Is that Brian Pezim the father of Tequila above me?! Yes there is a way it is by hedging with options. If you are afraid of slippage from gap ups / downs you can hedge by buying a call or put against your position. Example: Long 1500 shares XYZ @ $20. You set a stop loss at $19 GTC. You also buy a PUT of 15 contracts at a $19 strike expiring a two weeks away. If you woke up the next day and the stock gapped down to $16, your GTC stop loss may not have activated. However, you would have the right to exercise your Put, selling your 1500 shares at $18! Hedging is legit. OR if you are lucky enough and your stop loss did activate on your shares for that loss, then you can trade that PUT option outright and make profit on that premium increase! There you go! Now your job is to determine what premium you want to pay an option seller for that protection. It can easily eat into profits if you aren’t careful. However you could offset that premium by selling a call against your shares (covered call), but that’s more for investments rather than swing trades. Good luck! STONKS!! Join me in my Trade Journal livestream (Just type in my name in YouTube) in the morning if you have similar questions!

I attended - was a great time. We took a group photo while there - did that ever get posted in the chat room or on the website?

Hi Alex There is really no way to manage risk overnight. Once the markets are closed it is a done deal and you are stuck in the position overnight until the open of premarket. I do not think that Stop loss orders will fill in the premarket or aftermarket. If you enter them they will wait for the open of regular trading hours. You can watch them and set alerts but orders need to be entered as limit orders after regular trading hours. Manage your risk with research and share size.

You seem to be talking of buying PUTS, this is expensive. The cost of such a transaction would only be worthwhile if the IV was extremely low. Personally I sell covered calls and naked Puts (far out of the money) to reduce the cost basis of the shares I bought. Only downside is that you will loose your shares if the price moves above your strike price at expiration. You could still make a profit if the strike price is above your trade price. I generally repeat this process every week, sometime I sell the options two weeks out. With the short duration to expiration I will normally leave the options to expire and will rarely roll the options. When selling covered calls you normally have to keep your shares while the calls are active. For example, I own 100 SNOW shares and have been selling weekly covered calls with strike above my trade price and also naked PUTS at around 9 -12 Delta (10% chance of expiring below this level). This strategy generates a good income (roughly $700 - $950 / week). You could think of this strategy as reducing your cost basis and as a result your risk. I use TOS for my swings + options and only day trade on DAS, so I am unable to comment on option trading on DAS and TWs. If you are unfamiliar with options I suggest you complete the options training on tastytrade.com. It is free and definitely the best introduction training to options available. Please ignore the SMBU options training - it is completely useless in my opinion and actually dangerous for new options traders. Hope this helps

If you've added to your trade and want to update your stop loss I have two scripts for you (they will also work whether you are long or short): Update Stop Shares - Moves to Breakeven: CXL ALLSYMB;Route=Stop;Price=AvgCost;StopType=MARKET;STOPPRICE=AvgCost;StopPrice=Round2;Share=Pos;TIF=DAY+;Send=Reverse; Update Stop Shares - Doesn't move stop: CXL ALLSYMB;Route=Stop;StopType=MARKET;STOPPRICE=STOPPRICE;StopPrice=Round2;Share=Pos;TIF=DAY+;Send=Reverse;