
Does swing trading work?
Swing trading does not, according to most studies. According to them, out of their entire investor pool, the ones who are not frequently traded fared better than the ones who are regularly traded. This is because it is hard to determine market timing. In order for an asset price to be affected by many factors, it must be taken into account. Another important factor is the amount of time that investors need to dedicate to learning how to study market behavior and when to trade on a regular basis.
If you are more used to scalping you might see swing trading rather negatively. Swing trading has its pros and cons as with any other approach. But at the end of the day it depends on you as a trader - your approach, preferences, personality, the time you have at your disposal and your trading goals.
There are many traders who make swing trading work. The trick is to find a system that works for you, and a broker who offers a commission-free environment on ETFs. Following this strategy will allow you to trade without having to pay any fees associated with the trades, and will also give the trader the freedom to take positions in stocks on margin. Swing trading can be successful if done correctly.
If you're looking for a more aggressive trading strategy, swing trading may be the answer. Swing traders who trade more frequently, with shorter time periods between trades, will experience greater profit or loss per trade. Although some investors find this more risky, many find it to be more rewarding and less stressful than day trading.
Sep 28, 2021 23:01