10 Best Swing Trade Stocks to Buy in 2022

Swing trade stocks are an excellent way to ease into the day trading or even to begin trading in the first place. Swing trades can benefit from the faster profits of trading rather than long-term investing. 

Intro

Swing trading is a strategy for trading in the short term. As a result, traders are typically in and out of positions for days or weeks—the majority of best swing trade stocks basis on technical market indicators. As a result, a few tickers stand out as some of Wall Street's best swing trade stocks. Furthermore, swing traders are typically unconcerned with fundamental analysis. The goal is to profit from short-term supply and demand imbalances in the marketplace. However, the majority of new swing traders lose money. It occurs because they fail to understand the most important rule of trading: having an exit strategy. A trader should have two goals in mind before entering a position. The first is where they will make a profit, and the second is where they will lose money.

Aside from having a well-defined exit strategy, successful swing traders usually take two other factors into account. The first is a facilitator or reason for launching the business. It could be things like the breaking of a significant level or extreme overbought or oversold conditions. It is called the setup. The second thing is a trigger. It is the reason for entering the position, and it's what makes a trader put their money on the line.

10 Best Swing Trade Stocks

Facebook (NASDAQ: FB)

Facebook is the undisputed leader of social networks, and it is getting old with the passing year. Facebook, which had a $760 billion valuation at the time of writing and was the sixth-largest company in the S&P 500, reported a 12% increase in revenue and a 40% increase in net income in 2020. Given the reopening of businesses following the pandemic and the massive influence of social media on almost everything we do, swing traders should keep a close eye on the Facebook stock price.

Microsoft Corporation (NASDAQ: MSFT)

The COVID-19 pandemic compelled many businesses worldwide to accelerate their use of cloud and internet-based collaboration software. It implies that companies like Microsoft will experience increased market growth. So far, investors appear pleased with Microsoft's overall year-over-year increase in sales and earnings per share. 

This Washington-based software company reported that its commercial cloud revenue increased by 34% in the previous year, while its gross margin increased by 4%. Given the size and growth of this company, Microsoft stock may be considered a value play for swing traders.

Apple (NASDAQ: AAPL)

Tech companies appear to be doing quite well amid the ongoing stock market rally (at writing). By the end of January 2021, the tech-heavy Nasdaq had risen 1.4 per cent, and Apple had become a $2 trillion company. Apple stock provides good opportunities for swing traders due to its rapid growth. In the most recent quarter, its performance showed strength in nearly all its product categories, indicating a promising future for its share price.

Salesforce (NYSE: CRM)

Some may avoid Salesforce in favour of higher-growth stocks with much higher valuations, but its acquisition of collaboration software company Slack may pique the interest of swing traders.

Salesforce is a technology company that specializes in cloud computing. With a market cap of $200 billion at the time of writing, this company has bright prospects for the future, with significant revenue growth expected this year.

Netflix (NASDAQ: NFLX)

Netflix has been running on all cylinders. Netflix stock rose 53 per cent last year and appears to be on the radar of many swing traders these days. Netflix's recent performance is quite impressive, given that the company was previously regarded as a perpetual cash burner. Thanks to a $1.9 billion free cash flow generated during the coronavirus pandemic, the companies are finally producing cash like a company.

Caterpillar (NYSE: CAT)

Caterpillar Inc. is the world's largest producer of construction and mining machinery. 

Engines powered by diesel or natural gas, industrial gas turbines, and diesel-electric locomotives are examples of this technology. Examples of this equipment. Caterpillar's business is divided into four divisions: construction industries, resource industries, energy and transportation, and financial products.

The construction stock has a market capitalization of $87 billion and earnings per share (EPS) of $7.45. It pays a $4.12 annual dividend per share. Caterpillar has high liquidity, trading more than 2.1 million shares per day, and generated $53 billion in revenue in 2019.

NextEra Energy Partners (NYSE: NEP)

NextEra Energy Partners LP is a limited liability company formed to acquire, manage, and own contracted clean energy projects. It has investments in wind and solar projects in North America and natural gas infrastructure assets in Texas. Renewable energy projects are fully contracted, employ industry technology, and are located in areas where wind and solar energy can be generated.

Its portfolio's natural gas pipelines are all strategically located. They serve South Texas power producers and municipalities, Eagle Ford Shale processing plants and producers in the Houston area, and commercial and industrial clients. Sales of renewable energy generate the most revenue for the company.

Kellogg (NYSE: K)

Kellogg's, which was founded in 1906, is a global manufacturer and marketer of cereal, cookies, crackers, and other packaged foods. Its products are manufactured in 21 countries and sold in over 180 countries. 

Well-known brands include Special K, Frosted Flakes, Froot Loops, Rice Krispies, Pop-Tarts, Eggo, Kashi, and Morningstar Farms. The Pringles brand was added to the company's portfolio in 2012.Consolidated sales of Kellogg's account for roughly 40% of its total sales outside of its home market.

Kohl's (NYSE: KSS)

Kohl's is a department store chain that controls over 1,000 stores in the United States, but like most retailers, they took a hit during the coronavirus lockdowns. While not as shaky as department stores like Macy's and Neiman Marcus, Kohl's stock has dropped nearly 60% in the last three months.

Kohl's has everything you need for a great swing trade: a high beta, over 15% short interest, and an average of 14 million shares traded per day. Kohl's will also have a catalyst in an earnings call on May 19.

Starbucks Corporation (SBUX)

Starbucks, a global coffee chain with significant markets in China and the United States, remains a solid investment option despite mixed results. Swing traders who plan their moves correctly can make money with this stock.

Best Online Brokers for Swing Trade Stocks

Swing traders are looking for a high level of volatility. The industry doesn't matter nearly as much when looking for great stocks for swing trading. Remember that the purpose isn't to make a long-term investment. Thus company fundamentals aren't necessary. Rather than looking at long-term statistics, search for stock charts and signals that could influence a stock's short-term market activity.

Swing trading stocks is possible with any online broker; however, a traditional stockbroker may only allow you to "go long" and profit from the upswing by purchasing shares. CFD and spread betting providers will also allow you to "go short" by (theoretically) selling shares at the top of each cycle. 

Find a broker that accepts advance orders like "limit orders" and "stop orders," which will automatically initiate or close a trade when the price reaches your desired level at the bottom or top of the cycle.

Riot Blockchain(RIOT)

Riot Network, Inc. is a Bitcoin mining startup rapidly establishing large-scale mining in the United States to support the Bitcoinblockchain. The company is concentrating on growing its Bitcoin mining hash rate and infrastructure capacity to expand its operations. Riot believes that American operations will help the future of Bitcoin mining, and it aspires to be a part of that future.

Marathon Digital Holdings(MARA)

Marathon Digital Holdings wants to develop North America's largest mining operation at one of the lowest energy prices possible.

Marathon allows you to include Bitcoin in your portfolio without the hassles of holding the asset directly.

Coinbase(COIN)

Coinbase is the most user-friendly cryptocurrency buying and selling platform. Coinbase offers several benefits that make it the best spot to begin trading. Buy and sell popular digital currencies in one spot, and keep track of them.

Invest in cryptocurrencies over time by making daily, weekly, or monthly purchases. You can use this app if you have an Android or iOS device. You can remain on top of the markets by using the Coinbase app.

Argo Blockchain(ARB)

Argo Blockchain PLC is a worldwide data centre company that offers cryptocurrency miners a robust and efficient platform. The business's shares are traded on the London Stock Exchange's Main Market under the symbol ARB, and the ticker ARBK is traded on the NASDAQ Global Select Market in the United States. The corporation is based in London, United Kingdom, and has operations throughout North America.

Biogen(BIIB)

The biopharmaceutical company based in the United States is a pioneer in neurology and other diseases medicines. Biogen researchers may be on the verge of making a breakthrough in diseases like Alzheimer's, and they're about to gain FDA permission. Although it is a volatile stock, some analysts believe it is a decent long-term investment.

Apple(AAPL)

Based in Cupertino, California, it is a multinational technology company that specializes in consumer devices, software, and online services.

NVIDIA(NVDA)

It is one of the significant hardware leading manufacturers. With a net income of more than $2.8 billion in 2020.AI, adoption is being aided by Nvidia chips.

Why Invest in Swing Trade Shares?

Swing trading is not as time-consuming as some other trading tactics. For example, a trader may spend two to three hours every day buying and selling. Swing trading in the market is all about anticipating market movements and executing short-term bets for rapid rewards. The returns are swift, and with a well-constructed, diversified portfolio, you can profit from the stock market's ups and downs.

The best aspect is that the stock market provides swing traders with a variety of investment vehicles via which they may optimize their profits. For example, you could single trade stocks, stock groupings bundled in funds, large-cap stocks, growth stocks, and various other securities. Like all other financial trading tactics, Swing trading comes with a lot of danger, especially when you're new.

Swing trade stocks are those that are suitable for medium-term trading. There is, after all, long-term investing. It is the equivalent of keeping stock for a year. Then there's the business of trading. That's less than a year of stock ownership. There are three different trade lengths available as well. There is a long-term perspective. This period of detention will be closer to a year.

Short-term trading exists, and Day trading is another name for it. The stock is typically acquired and sold on the same day. Or it can happen a few days apart. Then there's the time spent waiting in between. Swing trading is another term for medium-term trading. Assets are typically held for a few days to a few months. As a result, any stock used as a swing trade can be used as a swing trade.

How to Find the Best Swing Trade Stocks

When looking for swing trade stocks, it's better to look for companies that have been around for a while. Because you're seeking something predictable, this is the case. It is preferable to examine the actual stock chart based on it. Finding something with consistent patterns makes life much easier.

And even better, find something that consistently goes up in waves. Strong companies are great for swing trading. They are usually older with experience in the market. Well-known companies with high profits and more oversized market caps tend to have these strong, upward climbing waves.

Swing traders trade the most volatile fluctuations by holding positions overnight, but the rewards can be more significant, mainly if options are used. Swing traders should look for equities with well-known catalysts, large volume, and enough volatility for lucrative short-term trading.

When swing trading, neither sectors nor fundamentals are essential. Because this isn't a long-term investment, technical indicators are more important than price ratios and debt loads. Even if a corporation has a mound of long-term debt and little cash flow, it might be a profitable swing trade.

Swing traders must be agile with their convictions; a company with increasing volume ahead of earnings may be one to sell short rather than purchase. Swing traders employ several tactics to increase revenues, but the stocks they seek always have a few qualities in common.

Features to Look for in Swing Trade Stocks

When looking for swing trading stocks, ignore debt levels and price-earnings ratios. Those figures may be necessary for a company's long-term prospects, but swing traders are interested in where a stock will go in a few days, not years or decades.

If you want to go into swing trading, here's what to look for.

1. Catalyst: Most swing trades start by looking for a catalyst that could cause a stock to move dramatically. A clinical study at a pharmaceutical business, an unexpected earnings miss or beat, or even the dismissal of a senior executive or CEO could all be examples.

2. Volume: Without high volume in the stock, significant changes in short time frames are impossible. Sure, small-cap stocks can be forced into large-cap ones and move without a lot of volumes

   However, search for higher volume stocks than typical in most of your swing trades.

3. Volatility: When there are many volumes, there is also a lot of volatility. Swing traders earn from massive, short-term changes. Therefore volatile equities are good swing trading stocks.

A stock running in a narrow weekly range is unlikely to offer many profit opportunities. However, if daily 5 per cent moves occur, there will be ample opportunities for swing trading.

You must keep in mind that while a swing stock's typical holding period is short, you can make significant gains if you catch the moves early. It is a sample list; keep in mind that stock market conditions are subject to change, so you must make your own decisions following current market conditions.

Conclusion

Swing trading is possible with a variety of equities. These stocks do not belong to anyone sector, as you can see from the list above. Swing trading isn't a long-term investment plan. Thus it doesn't matter. 

It's a short-term plan that necessitates precision and speed, but it also requires the ability to forget and move forward. Swing trading has a high risk of a trade going bad. However, how you respond to it is the key to your success.

Swing trading is an excellent strategy to profit from the stock market. If an investor's forecast is accurate, they can make a lot of money by trading in small increments. The above firms have previously demonstrated significant promise as the most outstanding swing trading stocks. With a view to the near future, these companies are ideal swing trade stocks to buy in if the company and the global economy improve and return to normal.