Position trading The first key to successful swing trading is picking the right stocks. The best candidates are large-cap stocks that are among the most actively traded stocks on the major exchanges. In an active market, these stocks will swing between broadly defined, high and low extremes, and the swing trader will turn the wave in one direction for a couple of days or weeks only to switch to the opposite side of the trade. We have been at the bottom for a long time. this is a good entry point.