Best swing trade stocks to buy in 2022

Swing traders make money by anticipating where stock prices are likely to move next and grabbing the chunk of profits when the move materialises. The goal is to capture short to medium-term gains over several days or weeks.
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Updated: Sep 26, 2022
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As there is a constant tension between bulls and bears, prices in the stock market oscillate. These oscillations are opportunities for swing traders to make money. Additionally, by focusing on how the price moves in a shorter time frame, traders can profit from both negative and positive momentum across the best stocks. Well-known catalysts for best swing trade shares are volatility and high volumes.

Before you read on, beware. Swing trading is significantly riskier than conventional stock buying and holding.

What are the top swing trade stocks to buy?

The usual holding period for a swing trade is short but substantial gains can be made if the moves are captured early enough. Liquidity is thus a crucial factor for each stock that the swing trader trades. However, traders need to note that stock market conditions are susceptible to change, so all trade decisions must be guided by the prevailing market condition.

Here is a list of the top ten swing trade stocks:

#Swing trade stock nameTrade now
1Facebook
2Microsoft Corporation
3Apple
4Salesforce
5Netflix
6Advanced Micro Devices
7Starbucks Corporation
8PayPal Holdings
9Amazon
10Alphabet
List chosen by our team of analysts, updated September 2022.

1. Facebook (NASDAQ: FB)

Facebook is social media’s undisputed king, and it turns 17 years old this year.

With a $760 billion valuation at the time of writing and being S&P 500’s sixth-largest company, Facebook recorded a 12% revenue growth and a 40% boost in net income in 2020.

Given the reopening of businesses post-pandemic and the massive influence of social media on almost everything we do, it makes sense for swing traders to closely watch the Facebook stock price.

2. Microsoft Corporation (NASDAQ: MSFT)

The COVID-19 pandemic forced many firms worldwide to accelerate their adoption of cloud and internet-based collaboration software. This inherently means more market growth for companies like Microsoft.

So far, investors appear pleased with the overall year-over-year climb in Microsoft’s sales figures and per-share earnings. This Washington-based software company reported that its commercial cloud revenue grew a whopping 34% in the last year and its gross margin widened by 4% the same year.

Given this enterprise’s massiveness and growth, Microsoft stock may be considered a value play for swing traders.

3. Apple (NASDAQ: AAPL)

Amid the ongoing stock market rally (at the time of writing) tech companies seem to be doing quite well. The tech-heavy Nasdaq was up 1.4% by the end of January 2021, and Apple became a $2 trillion company.

With such expansive growth, swing traders are finding good opportunities in Apple stock. The company’s performance in its last quarter reported strength in virtually all of its product categories, which is a sign of a promising future for its share price.

4. Salesforce (NYSE: CRM)

Some may shun Salesforce in favour of higher-growth stocks that trade at much higher valuations, but its takeover of collaboration software company Slack could warrant swing traders’ attention.

Salesforce is a tech company specialising in cloud computing. With a $200 billion market cap at the time of writing, this enterprise has good prospects in its future, with significant revenue growth being expected this year.

5. Netflix (NASDAQ: NFLX)

Netflix has been on a roll, firing on all cylinders. Last year, Netflix stock rose 53% and seems to be on the radar of many swing traders these days.

The recent performance by Netflix is quite impressive given that the company was previously considered a perennial cash burner. Thanks to a free cash flow of $1.9 billion generated during the coronavirus pandemic, the company is finally producing cash like companies are supposed to.

Where to buy the best swing trade stocks

You can swing trade stocks with any online broker, but note that a conventional stockbroker might only allow you to “go long” and benefit from the upswing by buying shares. Contracts-for-difference (CFD) and spread betting brokers will also allow you to “go short” by (notionally) selling shares at the top of each cycle. To automate the process, find a broker that supports advance orders such as “limit orders” and “stop orders” that will automatically open or close a trade when the price hits your target level at the bottom or top of the cycle.

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How to Trade and Invest in Swing Trade Shares?

1. Open a Trading Account
Find an online broker with low spreads and a wide variety of global markets to trade. Open up an account in minutes (but you may need to prove your identity) and deposit your initial investment.

2. Choose Market
Your broker should let you select any of the stocks in its list to see a share price chart. Look for high volume and volatility, and a share price that seems to be oscillating (up and down) periodically and predictably.

3. Place Your Trade
When you find a candidate stock, press the “buy” button at the bottom of its oscillations and the sell button at the top. This process can be automated by placing orders that will trigger automatically when the price hits the levels you set.

What are swing trade stocks?

Swing traders look for volatility. The specific sector doesn’t matter much when looking for ideal stocks for swing trading. Remember, the goal isn’t a long-term investment, so you don’t need to be too bothered about company fundamentals. Instead of looking at statistics that impact a company’s long-term prospects, look for stock charts and signs that could influence a stock’s short-term price action.

Profitable trading may come from swing stocks with three key characteristics:

  • A catalyst: an event that is very likely to trigger powerful moves in stock prices. This could be power changes in company leadership, clinical trials by a pharmaceutical corporation, or unexpected earnings
  • Volume: most stocks suitable for swing trading show more volume than usual
  • Volatility: volume often goes hand in hand with significant volatility, and volatile stocks allow swing traders to profit from big, short-term moves using technical analysis.

Are swing trade commodity a good investment?

Compared to some trading strategies, swing trading is not very time-intensive. The trader may, for instance, just spend two to three hours buying and selling in a day.

Applying the swing trading strategy in the market is all about timing market moves and making short-term trades for quick profits. The returns are quick, and with a well-put-together, diversified portfolio, it is possible to benefit through the ups and downs of the stock market.

The best part is that the stock market offers swing traders multiple investment vehicles to maximise their opportunities. For instance, you could trade single stocks, stock groups bundled in funds, large-cap stocks, growth stocks, and many others.

However, like all other financial trading strategies, swing trading carries significant risk, especially when you leave your trade positions open overnight. Good risk management is thus essential.

Usually, a stock will trend in a precise direction. Over time, the share price highs get higher or the lows consistently get lower. However, sometimes the direction and/or momentum may change abruptly. As a swing trader, you need to spot these opportunities quickly. However, you should never place your trades blindly. Use indicators like the moving average to confirm trends and breakouts before entering into a trade. You should also learn how to read trading charts and interpret patterns. Most importantly, learn how to set good stop-loss levels. Doing so can save you from losing money when things don’t go in favour of your trades.

Latest swing trade stocks news

Tech stocks will likely claw their way back out of the ongoing weakness in 2023, says Gene Munster. He’s the Founder and Managing Partner at Loup Ventures. Tech stocks remain good for long-term investors Technology is taking a big hit this year as the U.S. Federal Reserve continues to…
Galaxy Digital Holdings Ltd. (TSX: GLXY), a financial services and digital asset provider in the blockchain space, has partnered with Chainlink Labs (LINK/USD) to provide access to crypto pricing data for blockchains. The firms will offer the service via Chainlink’s oracle network, they announced in a…
Barclays (LON: BARC) share price plunged to the lowest level since August 1 as concerns about the UK economy continued. It dropped to a low of 156p, which is about 11% below the highest level this month. Other UK banks like Lloyds and NatWest have also pulled back…
The last trading week of the month started just like the previous one ended – with a bearish tone. As such, the S&P 500 made a new low for the year, trading well into bear market territory. Investing in the stock market is typically for the medium and…
Netflix Inc (NASDAQ: NFLX), on Monday, said it will set up an internal game studio in Helsinki, Finland. Shares closed the regular session down about 1.0%. Netflix is aiming at 50 games at its app by year-end The announcement follows $72 million that it spent on Next Games –…

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