High Likelihood of
One of the advantages of swing trading
is that it is easy to be successful. Since swing traders aim to make
5 - 10 percent profit on trades, they have a much higher chance of
consistently achieving their goals.
A note of caution to potential swing
understanding swing trading and becoming successful at it takes
time and dedication. You must take the time to study, practice and
become adept at reading the movements of the markets. You must also
be disciplined and practice strict money management.
Discipline enables you to make trades
based on facts, not emotions. You must be willing to cut your losses
and sell unprofitable stock instead of holding on and hoping that
its share price will rise.
Most individuals who lose money on
swing trading often invest too heavily in the outcome of individual
trades and are unable to take small loses. As a result, they keep
bad trades and eventually lose more money than they should have.
If you are just starting out and want
to try out swing trading, it's best to seek the advice and guidance
of expert swing traders.