 What's going on everybody, Estas here. Welcome back to another video. So in today's video, I'm going to be talking to you guys about how you can preserve your capital when you are swing trading in the stock market. And for those of you guys that don't know what swing trading is, I'm sure it's a minority of you guys. I'm sure it's only 2% of you all watching out there. But swing trading is when you buy a stock and you hold it for more than a day. That's pretty much it, right? You buy a stock and you sell it in two days, three days, four days, a week, two weeks, a month, two months. That is considered swing trading. Day trading, on the other hand, is when you buy a stock and you sell it that same day. So for example, you guys see Microsoft here. Let's say I were to buy Microsoft right now at $138.19. We go to that one day, one minute. If I were to buy right here, sell in an hour, that would be considered a day trade because I bought and I sold in the same exact day. But if I were to buy right now, and I were to sell in two weeks at $140, let's say for example, that would be considered a swing trade. And in this video, it's going to be a quick video. I'm going to be giving you guys my number one tip, what I personally do again when it comes to preserving capital while swing trading. And if you do find value in this video, if you do enjoy the video, feel free to go down below and hit that like button. Drop a comment. Let me know what you guys think about this. Let me know if you do this as well when you are swing trading. And consider subscribing to the channel if you do want to see further content from me. I'm producing content on the stock market, investing, trading, personal finance. If that's what you're into, this is the right place for you. So the number one thing that I do, what I personally really believe in is scaling into your positions, guys. And I can't stress this enough. And for those of you guys that have been following me for a while, you know that I talk about this a lot on the channel, a lot, a lot, a lot. I talk about this a lot on the channel. Scaling into your positions, what exactly does this mean? So let's say a stock that I'm actually watching right now to swing trade is FedEx, right? ticker symbol, FDX FedEx Corporation and all in all guys, the summary of FedEx is it's been falling down in price for a while now pretty much over the past year. And the first thing I look at when I'm looking for a swing trade is, is that stock at a dip and is that stock reversing and confirming the reversal to the upside to begin an uptrend? That's the first thing that I'm personally looking at. And since FedEx is confirming that, right, it seems like we found a bottom at 150, we're reversing, you know, we're actually making higher highs and higher lows. It seems like we're uptrending, we're breaking out of moving average resistances, we're breaking out of this 170 resistance and holding it as a new support. Since these things are starting to line up, which again, are kind of the mental checklist, the mental cues that I look for before entering a swing trade, since they're all lining up. Now I'm considering adding money. And what am I going to do guys? Am I going to add, you know, $10,000? Let's say that's my goal position. Am I going to add $10,000 upfront right away? Or am I going to scale into my positions? Well, the answer to that is I'm going to scale into my positions, right? And let me show you guys exactly what I mean by this. So let's say again, my goal position is $10,000, right? I want to be in with $10,000 in FedEx and my exit is going to be at this point $185. That's the gap that if FedEx confirms the bounce at $170, that's the gap it could fill up to $185. And that gives us about a 7-8% margin of profit if we were to get in from here and sell it perfectly at $185 in the perfect scenario. And of course, it doesn't always play out perfectly guys, but for the sake of this example, let's pretend that this plays out beautifully. So I take my $10,000 and me personally, I scale into my positions 10 to 15% at first. So let's say we broke the $170 resistance, this is a good direction or good confirmation that we could fill the gap up to $180. I wouldn't want to add all my money here right off the bat because we didn't really confirm the bounce on $170 quite yet. So what I would do here is I would scale into the position with about 10 to 15%. So that would be around $1,500 and maybe even sometimes 20%, which in this case would be $2,000. That's what I would add right now. I would add the $2,000 right now, then I would see how it ends up playing out. If we were to bust the $170 support and then start to trend back down to the low $160s, I would cut my losses there. And this is very important because you guys read in the title how to preserve money. The whole idea here is to preserve money. We want capital on our side. We don't want to lose the capital. So in this case, we preserve money because we scaled into the position. We went in with $2,000, $1,500. So that initial loss from us cutting our losses from the stock breaking the pattern, we didn't lose as much money as we would have if we hopped in all the way with $10,000 right off the bat. So let's say that negative scenario played out. We put in $2,000 at $170. We broke $170, which is the spot we need to hold above in our trading scenario. Let's say we broke $170 and then we cut losses at 2%. Right? 2% loss at $2,000. What is that up top my head? That's probably around $50, $40, $50 loss right there, right? But let's say you went in all the way with $10,000, you didn't scale in, you put your whole account, screw it, right? Throw the whole account in the position, 2% loss, you would lose $200 on that $10,000, right? That's kind of the idea here of scaling in because if it doesn't go your way initially, you won't lose as much money as if you would have if you put your whole position in, right? And another thing about scaling in guys is I personally don't fight against the trend, right? And I'm sure a lot of you have heard this in the trading world and the swing trading world and stock world in general, don't fight against the trend, right? If you're looking to short-term trade. It's different if you're looking to long-term invest, you know, dollar cost averaging, sometimes the stock is downtrending and you buy into the weakness, that's a different scenario, right? That's long-term investing. We're talking about swing trading right now. When it comes to swing trading, I don't fight the trend. So let's say, you know, we were to break, that would be where I caught losses, right? But let's say we confirmed 170 and we continued this trend and I added my $2,000 at 170 and we continued the trend to 175. Maybe we pulled back and retested 172 and then we confirmed the pop there and the continuation. This is me not fighting the trend because, you know, the trends upwards and I would add more money as it continues to push up, right? Me fighting the trend would be if we continued to downtrend and I'm thinking on myself, this is going to reverse. I'm going to just keep adding money averaging down. It's going to come back. That's me fighting the trend. That's me going against the trend in general. But if the trend continues to pop up, it continues to pull back. Our side comes down. We see the healthy pullbacks, which again, are very healthy. You know, those typically open up, you know, entry points and they really just confirm the trend as the bottom out and then continue to push up. And that's how I view, you know, entry points. I like getting in as the trend continues to confirm itself up. So an example again, guys, you know, just to continue that example, let's say the perfect scenario here would be again $2,000 at 170. Another $2,000 if we popped up to let's say 175 pulled back to 172. I'd add another $2,000 here, maybe 172, 173. Now I'm in with $4,000. And as long as this trend continues to push up, as long as I'm not fighting the trend, but I'm riding the trend, you know, let's say we popped up to 176 and pulled back, I'd add even more money at let's say 174. And now I'm in with $6,000, 60% of my goal position. And you guys kind of get it, right? You know, we continue to ride up, we continue to follow the trend, and we continue to add money as it goes up. And then ultimately, you know, when we're up at the 180s, when we're close to that sell point at 185, we're in about 70, 80, 90% of the position. Sometimes, you know, if we've already built a full position, a pretty big position, we might not add that full $10,000, right? Sometimes, you know, I'd cut it out at like $89,000. It really just depends on what the trend is looking like. And at that point, you know, we've built, I would have built a strong position size, pretty strong average. And at 185, you know, I'm not going to grab the whole 89% like we saw in the beginning, because I was averaging up, but I'd grab about a 345% at least profit, you know, if my average was around 175. And you guys can see that for yourself, right? 345% from that 175 average. And that's the whole idea, right? Preserving capital at first, you know, if you're looking to hop in pretty early into position or early enough where it hasn't confirmed the full on trend, I think it's best to hop in with a 10%, 15%, 20% and then add more money as the trend confirms itself as things continue to push up. That's what I personally do, guys. And it's really helped me in terms of conserving my capital, which again, capital is the number one thing you need. You need to conserve that when you are trading in the stock market. So, let's say we do another quick example. INTC right now is one that I'm also looking to swing trade. Perfect example here, guys. You can see, you know, if we go back a bit, INTC right now is a bit overbought, right? So, let's say we were to pull back and then retest this $50 level of support. That was an old resistance. You guys can see it from a couple months ago. Obviously, when we broke out of that resistance, we made it a new support. Let's say we pulled, excuse me, let's say we pulled back here and made a new support. This would be a spot where I would consider adding maybe 15, 20% of my $10,000. So, I'd put $2,000 here and then as we can really confirm this and then popped from there, you know, to fill the gap up to $52, that's where I'd add even more money. Let's say we bounced that $51, we went up to $51.50 again, that is where I'd scale in with another $2,000. I'd be in with $4,000 at that point. And let's say my next spot of confirmation where I want to add more money, again, we're not fighting the trend. We're riding the trend would be if we were to break $52, which is this resistance, and into the $52s to hold that as a new support. That would be where I would add another $2,000 being in with a total of $6,000 at this point, right? And that's pretty much it guys, right? Preserving capital comes down to, in my opinion, scaling into positions, being very strategic and cautious where you are entering the stock. Understanding, moving averages, resistances, supports, and if you guys need more clarity on this, just subscribe to the channel. Again, I'm making videos on this stuff every single day. I have a ton of videos, I have over 500 videos on YouTube talking about this stuff. And honestly, guys, the more you look at charts, the more you draw outlines, the more you're watching movements during the day, the more you'll understand this stuff, and you'll be able to almost build like an intuition to where entering positions seems smart, where it seems stupid. It really takes time to build this kind of intuition when it comes to the stock market. So I'm going to wrap up the video here, guys. If you enjoyed it, feel free to go down below and hit that like button. Drop a comment down below, what are your thoughts on this? Do you implicate this into your own strategy? I would really love to know what you have to think about that. And consider subscribing to the channel if you haven't done so already. It means a lot to everybody out there subscribing to the channel and watching these videos. I really do appreciate you guys from the bottom of my heart. I'll catch you all in the next video. Thanks again for watching. Thanks for taking the time to watch this video. Peace out, guys.