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If any part of your portfolio is likely to be volatile, then your best bet with swing trading is to buy in at a low price and trade as much as you can at that price. That way, if your trade is a small percentage percentage of the entire trading day and you don’t sell at that price, you can still profit from the volume of trading you did. Of course, it’s not that simple–there’s a high chance that there will be price action after your trade, and you need to be prepared for that. But if you’re careful and you can’t sell the position before it goes up, you might very well make a nice profit and be rewarded with a lot of trading.
I’d also point to the advantage from day trading of having better liquidity than at some other platforms, with better liquidity than an average individual investor would ever have and not having to deal with this type of volatility of volume which can affect an individual investor–and this happens over and over and over again.
Do swing traders even matter anymore in the stock market?
The debate over whether swing trading is a worthwhile investment continues to this day, especially after many investors (especially early-adopters) have had their share of losses, but the point is this: there are good reasons to invest in swing trading strategies, but only if you have a solid understanding of what you are doing.
If you follow a swing trading strategy for the sake of swinging trades or simply like to make money flipping stocks, then all is well–but if you need help with the risk of making a loss, then you won’t get much of value out of it. You will need to pay close attention to what is happening in your portfolio and determine whether you want to trade a certain way or whether a more conservative approach will do you more good.
In many cases, a better option might be to simply trade a larger amount at any given time. There’s no better way to learn than to try and make a few big trades each day and build a good trading body.
If you want to learn more about what it takes to build a trading body, join our online trading course and we’ll send you a free digital file along with a checklist of things you need to do.
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