Best Stocks for Swing Trading to Watch in 2024

Swing traders are short-term investors who attempt to profit from stocks with high volatility. This article explains how to identify the best stocks for swing traders, the advantages and disadvantages of swing trading, and provides a list of some of the best stocks for swing trading to watch. 

How to Identify Swing Trading Stocks

This section covers swing trading and gives an overview of how swing traders identify the best stocks.

What is swing trading?

Swing trading is an investing style in which investors aim to profit from short to medium-term price developments. A swing trader uses a whole suite of indicators to identify the best stocks for a swing trade, which they think will rise or fall within the next few days or weeks.

Identifying the best stocks for swing trading 

To start with, swing traders often use screening tools to filter stocks based on price, volume, volatility, and certain technical indicators. In the search for the best stocks for swing trading, many stocks can be excluded based on these types of factors. For example, a stock that has very little volatility will be much harder to generate profit from as the price may not move - or swing - that much. Trading and investing generally is challenging and will involve wins and losses.

There are no hard rules for what makes a stock the best stock for swing trading. After initial screening, experienced swing traders may look at upcoming news events and product launches, anticipate positive or negative earnings reports, and analyse the stock’s price chart with technical indicators like the Moving Average Convergence Divergence (MACD).

Best Stocks for Swing Trading List to Watch 

Below is a list of some of the best stocks for swing trading to start your research. It is important to note that this is a subjective list which is best used as an indication of the type of stocks swing traders look for. Swing traders should perform their own research before setting up any positions.

1. Apple (AAPL)– Personal Computer and Phone Giant 
2. Microsoft (MSFT)– Dominant in Personal Computers and Software 
3. Meta Platforms (META) – Operates the World’s Most Popular Social Media Platforms 
4. Shell PLC (SHEL.UK) – Fossil Fuel and Energy Industry Leader 
5. LVMH (MC) – European Luxury Brands Conglomerate 

Apple 

Currently, Apple is one of the largest technology companies in the world. Founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. Apple played a significant role in the newly-forming market of personal computers. In 1984 the Macintosh was released, one of the first computers with a graphical user interface and a mouse. 

Around the turn of the millennium, Apple was on the verge of bankruptcy due to difficulties in establishing their profit margins. In 1997 Steve Jobs returned to the company and played a role in the launch of the iMac, iPod, iPhone, and several successful marketing campaigns that turned Apple into the household name it is today.

Apple has a range of smartphones, tablets, and desktop and laptop computers. Just over 50% of its $383 billion revenue in 2023 came from the sales of iPhones. Apple also offers subscription services like Apple Music and Apple TV+, which have subscriber counts to the tune of 88 and 75 million. Currently, Apple has a market capitalisation of roughly $2.7 trillion. 

Microsoft 

Microsoft was founded in 1975 by Bill Gates and Paul Allen and quickly became dominant in the personal computer space. In 1985 the company developed a graphical extension for MS-DOS called Windows, its flagship operating system that would go on to power the majority of the world’s computers.

In 2001 Microsoft ventured into the gaming space with the release of the first Xbox, taking up the fight against Sony and Nintendo in the video game console market. In the following two decades, Microsoft has continually iterated on the Windows OS and developed software like the Office suite.

In terms of hardware products, Microsoft chiefly sells the Xbox console and high-end PC products like mice and keyboards. Besides the operating system Windows, Microsoft has the Office range, server software, a large range of video games, and software development software. Currently, Microsoft has a market capitalisation of $3.18 trillion.

Meta Platforms

Formerly known as Facebook, Meta is one of the largest companies in the world. It was founded in 2004 by Mark Zuckerberg and four others. Its rise to power was largely due to the social media platform Facebook, which allowed users to create personal profiles and post and follow updates of their friends and relatives.

In 2012 Meta (then Facebook Inc.) had its IPO in which it raised $16 billion, the third-largest in US history. Over the years the company acquired and developed many social media platforms besides Facebook, namely WhatsApp, Instagram, and Threads. In 2021 the company rebranded as Meta to signify its shift in focus to the Metaverse.

Currently, Meta owns the popular social media platforms Facebook, Instagram, and WhatsApp. Recently it has added Threads to that list, a short-form content competitor to X (formerly Twitter). Current data indicates that Meta has a market capitalisation of $1.33 trillion.

Shell 

Formed in 1907 through the merger of the Dutch Royal Dutch Petroleum Company and the British “Shell” Transport and Trading Company, Shell has long been one of the world’s most significant producers of oil. In 1964 Shell diversified into the natural gas industry, which has become a cornerstone of Shell’s business model.

Shell is active in all areas of the oil and gas industry, including everything from exploration and production to refining and transport, to distribution. In addition, it is the world’s largest retailer of energy, with more than 46,000 gas stations and over 9,000 car charging points.

Shell is active in over 80 markets, servicing 32 million daily customers. Since 2001, under increasing public pressure, the company has dedicated some of its efforts to green energy production. It now operates several wind farms. Currently, Shell has a market capitalisation of around $2.33 billion. Most of the company’s revenues still come from fossil fuels.

LVMH

Louis Vuitton Moët Hennessy (LVMH) is a multinational conglomerate specialising in luxury goods. In 1987 the fashion label Louis Vuitton merged with the liquor and champagne producer Moët Hennessy, which itself was the product of another merger. The roots of these companies lie way back, the oldest being Moët and Chandon which was incorporated in 1743.

Throughout the years since its formation, LVMH has acquired numerous brands in the fashion, liquor, and jewellery industries. Some of its brands include Dom Pérignon, Christian Dior, and Tiffany and Co. The company’s focus lies chiefly in the high-end luxury goods industry, selling bottles of Dom Pérignon for upwards of $1,000.

LVMH reported a revenue of €86 billion in 2023. Around 27% of that revenue stems from France and the rest of Europe, arguably the company’s home turf. The company is also well-established in the United States, in which it generated roughly 32% of its revenue in 2023. Currently, LVMH has a market capitalisation of around €400 billion.

How to Invest in Stocks for Swing Trading

With Admirals, you can trade and invest in over 3,000 stocks and ETFs. You can learn more about trading and investing commissions on the Admirals Contract Specification page. Search for global stocks and ETFs from the MT5 web platform and invest in four steps:

1. Open an account with Admirals.
2. Click on Trade on one of your live or demo trading accounts to open the web platform.
3. Search for your symbol at the top of the search window.
4. Click Create New Order in the bottom window to open a trading ticket to input your trade size, stop loss and take profit level.

Conclusion 

Swing trading with the correct stocks can allow investors to profit from short-term price swings that develop in the stock market. News events and earnings releases can cause relatively large up or down price swings which swing traders try to anticipate.

However, when swing trading the risk of unforeseen news events can negatively impact a swing trader’s positions. These events can be difficult to predict and will result in wins and losses.

Swing trading requires a certain level of active monitoring and adjusting of positions. Whilst the time investment required is not as high as for a day trader, a swing trader will need to keep an eye on the news surrounding their portfolio. 

Continue Reading:

• Best Shares to Buy
• Best Monthly Dividend Stocks
• Best Stocks for Long-Term Growth
• 6 Short Term Investments
• How to Trade the US Stock Market
• The CFD Trading Guide

FAQs on Best Stocks for Swing Trading

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