In this type of trading, a trader uses the difference between the current dollar price for a certain market/stock and the current average price for a certain market/stock as a reference point to calculate the profit and losses on an exchange, which are commonly referred to as ‘swings’. The trader then buys and sells a certain number of shares, which in this example I am going to call $40,000, at the current average price for the market/stock using the same dollar-for-dollar method. In order for the trade to be profitable, the trader needs to trade at a profit above or below the current average price for that market/stock over the next hour. The more swings you can add up in an hour or so in comparison to the next hour, the more profitable the trade will be.
If for example, the trader was already trading at profit of at least $80,000 at the time, and were to add 5 or 6 of the most recent swings in the price of the stock from the current price to the end of the session, the profit would be $180,000!
To achieve such a profit, the trader needs to have an extremely high number of swings over the course of a few hours. You do get better results if the trader is trading at a profit above the market average price for a specific time period. To do so, the trader needs to use the difference between the current market average price for a stock and an average price for a company within the same market. On a recent trading day, for example, the last swing in the price of Apple would be $99, and the average price within the same market would be $100. The difference between the two values is the number of swings that have occurred within that time period and has affected the average price for that market/stock.
To calculate this number of swings, I started by running Google Trends to identify recent days when Apple, among many other names, was trending significantly higher than the market average of $100.
The result for this search was that the “Apple” keyword was driving up interest in the Apple iPhone 6S/6S Plus. I then created a search in Yahoo Finance to track the price change over the same time period. When I entered “Apple” as a search term, I was able to see an instantaneous spike in the price of iPhone 6S/6S Plus, which reached an all-time high of $100, only to drop to $99 within