# How do you trade swing highs and swing lows? – Investors Underground

(We’ll cover this more in the section below titled Faking it.) As you can see, they’re not that far apart. The difference is that in real life, they don’t work with each other, so what it is about the swing low that really makes it work is where the bottom is.

I’ll give you a basic example: When you sell a stock at \$27, it’s a very good move, but the fact is that the bottom exists at \$24, which means it isn’t a good trade at the moment. The bottom isn’t where that trading volume is, so to get a decent profit, you need to find a trade at the higher price. When it comes to the stock, there’s usually a lot of variation in the price of the company you’re trying to buy. I’ll illustrate this example with this example.

Let’s say this is a \$300 stock and the price is \$275. There are two possibilities:

The first is if you buy at \$27 and sell at \$28, which is \$10 a share. In this situation, you get \$10 of value for \$25, which has some upside right away. Remember that you’re not technically trading for a profit, you’re just trading for someone to buy it at \$27. That is called a volume-adjusted trade, so to get the full profit, you’re going to need 200,000 shares. You might do your best to trade a very aggressive volume in order to make such a trade, but if you don’t get the volume (and I’ll talk more about why this happens later in this post), you’ll find that you just missed the opportunity to make more money.

The second is if you sell at \$275 and buy it at \$28 (meaning you got 5 cents of value for the \$25), which is \$4 more at a volume-adjusted rate and puts you at the higher price. For example, with this combination, you would get \$4.50 for your \$25 purchase, which is a profit of \$2 more than what you could have gotten with a volume-adjusted position.

A volume-adjusted position is just like an open position that has been artificially created because of the volume. If I’m buying a stock, and you sell at \$25 right now, you could have traded \$5 worth of volume at the price you just bought it at even if you were sitting around waiting for a better price in the market. It’s