Swing it and be double in the green

Last week I went on a trip and since I wanted to enjoy my time I decided not to day trade. Instead I searched for some swing opportunities, put the trades in and just checked them from time to time. It was wonderful! Having the possibility to make money while being away from the screen and enjoying nature is the best job ever. That’s what you call being in the green! 

Day trading seems to many new traders much more attractive than swing trading. Even if they have never tried swinging before. Why? Is it because it sounds cooler to say “I am a day trader”? Not sure.

What I do know is that if you can swing trade you can also day trade. And that swing trading makes you a better day trader. Why? Because you automatically look at the bigger picture to define your plan. And that helps you stay longer in winning trades instead of getting shaked out by short term price swings.

If you are a trader, the key is flexibility. You need to be able to take advantage of different types of opportunities the market gives you. And sometimes that means taking a swing trade and holding the position for a little longer than a day to make a greater gain.

Many people do not realize how many advantages swing trading has. 

First of all, it requires lower time commitment. Perfect if you have a full time job because you get your salary and make extra money on the side. You can plan and enter your orders outside trading hours and spend an hour or two checking and monitoring your positions. 

Secondly, you are less exposed to volatility, which helps you build confidence. Many times when you watch the charts and your position is getting closer to the stop loss, you start second guessing yourself and your decisions. Being away from the screen prevents you from being shaken out of a potentially winning trade.  

And last but not least (especially important for beginners), you don’t need a large account size. You can start with a small amount of money and build from there. There is also no exposure to Pattern Day Trader rule (PDT), so as long as you hold each trade overnight, and you can take as many trades as you want. 

Is there anything to be aware of? 

Yes. With swing trading you are more exposed to risk. There could be an unexpected event happening overnight that impacts the price significantly. So, always make sure you do your due diligence, estimate the risks and size your positions accordingly.

Risk is part of trading and proper risk management is the first thing that you need to take care of. That’s what will keep your account alive and you as a trader prosper, regardless whether you are a swing or a day trader. 

Still hesitating between the two?

Click here to schedule a complimentary session with me and let me help you figure it out.