What is... SWING TRADING?
Swing trading is a short-term strategy that focuses on the short-term movements in the market, with swing traders typically holding their positions for a few days to a few weeks.
As a straightforward trading style that pre-determines your entry and exit points in advance, it only requires a couple of hours a week and complements well into your weekly routine.
If you’re looking for something more leisurely-paced compared to intraday trading, but feel that trend & investing is a bit too slow-paced, swing trading may be your cup of tea (or coffee)!
Swing Trading
There are a few factors to take into consideration when deciding if a trading style suits you.
Does it fit your PERSONALITY?
If you’re someone who likes simplicity, doesn’t mind getting less as long as it's hassle-free, and prefers to be in action regularly instead of being idle in the market, swing trading might be the right fit for you!
Can you commit the TIME?
Swing trading is a straightforward trading style that requires few hours of your time per week to get started! You'll be actively monitoring and trading the short term swings of the chart movement. As your entry and exit are predetermined, you are able to quickly rinse and repeat this process to compound your wealth.
Are your expected RETURNS realistic for this trading style?
Stastistically, swing trading will help you generate around 24-60% of returns per year when you're competent and disciplined, as you are capitalising on the short term movements of the market. So, if your expected returns fall into this range, swing trading can realistically achieve it!
If you think swing trading is for you,
Or if swing trading doesn't seem like the right fit,
The REALITY of trading styles
Things to Note
Important:
Whatever trading style that you choose now is not cast in stone. In reality, most traders and investors master a few trading styles that they use simultaneously or seasonally depending on the market condition.
Therefore, there is no absolute best trading style, only the most appropriate according to your personality, time commitment, expected returns, lifestyle and also the market condition.
Understanding different trading styles and knowing when to use them is key.
