What Are The Pros And Cons Of Swing Trading?

Every trading strategy comes with its pros and cons. One should choose his
strategy according to his needs and goals. First, you need to find the best platform for trading.

Pros of doing swing trading

• This trading method provides good returns when compared to the other
  conventional form of trading. A swing trader earns approx. 5-10 % return for a
  very short period. So investing as a swing trader makes you rich in a few days
  only.
• The second good thing about this type of trading is that you can do your
  job alone with this type of trading. Unlike day trading, you don’t have to
  stick to your laptop all day.
• There is no hurry in closing the position like day trading. So one need not
  spend much time on finding the right trade for him. Trading allows
  holding your position for many days to several weeks.
  Now let us discuss the flip side of Trading, i.e. the cons of this trading method.

Cons of doing swing trading

• For doing swing trading, a trader has to be familiar with technical
  indicators and must have done technical analysis of a company. Without a
  technical analysis and proper research, one cannot expect to make a profit.
• The second con about trading is the risk involved is very high.
  Irrespective of your experience, there are always some trades which
  make you taste the losses.
• However, one can omit these losses by using put options or stop-loss
  orders that are per defined.
• In swing trading, there are upward and downward gap scenarios.
  Suppose your trades are not aligned with the stock market sentiments,
  and it opens opposite to your trades then no one can stop you from
  having losses even the stop-loss orders too.

Bottom Line

The idea of swing trading must be clear now from this beginner guide to swing
trading. Continue reading our full course: Swing trading foundation course
2022 for more exciting facts and tips. The next chapter deals with the pros and
cons of swing trading in detail.