Before you even think about start trading, you must know there is more than a type of trader. Today I’m writing about swing trading for beginners. The first thing you need to know is what is a swing? It is not a mystery that a swing in trading or in a financial environment can be the movement of a price in a market. Swing trading can be seen as the same thing as day trading but with a larger time frame.
I’m going to cover everything you need now about a swing trader. If you’re familiar with the term, check out the Different Between Swing Trading and Day Trading. If you want to know how to be a swing trader, keep reading. Let’s start with the basics, as I always say.
A swing trader is a person or the bot that does swing trading. A swing trader will take trades and hold them for a day or even for months in order to profit from the price change in that period of time.
Being a Swing Trader can be so much fun! It doesn’t involve too much time to set everything up..
As I always say everything is better with an example. A while ago I mentioned that swing trading is similar to day trading. However, with swing traders, you have different time goals. For example, you found a few stocks you’re interested in buying or selling. But set your holding time anywhere between overnight to two weeks.
Instead of just holding the stock until it goes to whatever price range as with buy and holds, you have specific targets and stops.
Swing trading is mainly stocks (either long or short positions) and rarely for longer than two weeks.
Once you learn the swing trading basics and set your strategy, yes it can be very profitable. A good example to know if swing trading is profitable is this one. Some traders hold their trades for five months, for example, and spect a 25% profit in total for that time period. While a swing trader can earn like 5% profit or more closing trades weekly. This way can surpass the others trader’s profit in the long run.
Once covered the basics in swing trading, the rest is in your hands. A swingtrader can be exposed to overnight and weekend risk, by this time price usually gap and people freak out. Set everything up and read a lot, stick to what work for you an you sure will have swing trading successful stories to tell or write about.
Firstly, if you want to learn how to become a day trader or a swing trader and start trading on your own with ease and confidence – Sign up for the FREE Mini Course.
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