Hello friends, today we are going to talk about what is Swing Trading, how to do it, what are the advantages and disadvantages, let’s discuss in detail about it.
Swing Trading :
Swing trading In this, people take positions based on the movement of the coming two-three days or weeks and try to make profit from it. If the market has come in such a range and if the movement coming in it or the movement that can come in a short period of time is counted, then it should be taken advantage of by taking a position. This requires a lot of practice. It is necessary to take care of it after the market and during the market. So active traders should take similar positions. Defensive investors are advised to stay away from such positions.
Advice for investors looking to make only safe investments:
Once the bearishness starts, it is in the best interest to hold on to your capital until another long term buy signal appears. In recession, people have to buy shares available at a cheap price. Hence he would be seen buying excessively in the current decline. People go out to buy cheaply according to the saying ‘buy yourself and sell at high cost’, but they always forget to sell at high cost. When it comes to investment, then your decision should not be based on what is getting cheap and what is getting expensive. Because you find some shares cheap in different periods and even if you get the same shares at a lower price when the time changes, you may find them expensive.
Swing trading plans:
There are many strategies available for investing in the share market. As you have seen, the basis of different trading methods depends on different circumstances. Before building and implementing any strategy, it should be thoroughly tested.
Each investor should choose and stick to the individual count of the strategy as per his/her suitability. Not all strategies are suitable for everyone. But every strategy has the qualities shown below.
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Investment will continue till swing trading profit is not received and loss will be deducted at the right time, is it necessary to have such a system?
For example, not exiting the shares in loss by placing stoploss on time can prove to be a big mistake. Similarly, getting out of high yielding stocks too early can prove to be an equally big mistake. Many times when this happens, people consider their own fault and accept the solution by saying ‘even if the profit is less’. But they forget that the profit lost due to mistake is also considered as loss. Because if there is no concern for profits, then there is no point in coming to the stock market? People keep their heart believing that the profit they lost without ignorance and lack of strategy was not in their destiny and they get as much as it is in their destiny. Instead of this false understanding of their own, profit can be taken many times by creating a suitable strategy. Similarly, it is equally important to learn to stoploss in a bad investment. But not all people have the habit of doing stoploss. If a standard is fixed on the basis of various aspects in which the percentage of loss should be fixed, practical decisions can be taken at all times.
The stoploss should be at such a level where most of the capital and profit will be safe.
So practically on the basis of charts such a level should be fixed where initially the probability of loss in terms of percentage is less and even after going ahead stoploss and trolling stoploss should be built at such a level which determines That the profits you get will not completely go to dust. Even if you lose 25 to 30% in any one share, its result on your portfolio is not that much due to diversification and in terms of percentage, not more than 4% capital is lost.
Doing this helps in keeping your portfolio balanced. Because when the market declines, all the shares that are in your portfolio are unlikely to show a simultaneous and uniform decline.
In short term market fluctuations, you should decide clearly:
When there is chaos in the market, then in short term fluctuations, if you have set a certain parameter and take a decision based on that, then the mental result of the market fluctuations does not affect you and at that time the consequences of the decision taken under stress Loss can be avoided.
Friends, after reading the article, you must have understood that what are the advantages and disadvantages of swing trading in the stock market, swing trading is a good time consuming task, if you like the article then share it with your friends. Don’t forget to do