With the world being as it is right now, and the quarantine affecting so many jobs, there is a lot of people looking for alternative ways to make money. Some have found themselves living by working as freelancers, whereas others might have found success in their own entrepreneurship, but a lot of individuals don’t have the time to develop a skill viable for freelancing, and others don’t have the time to start their business adventures.
That’s why some people might be interested in the world of trading, which has been gaining a lot of reputation over some years now, and its regarded by its practitioners as a rather profitable enterprise.
With that said, I understand how some people might have their doubts about it since they’ll need to invest some of their money to start trading. And I can tell you right away that trading has its advantages and disadvantages since risks might put you at loss on occasions, but it can also provide you with profits once the day ends.
Now, in this article, I’m going to talk about a specific type of trading known as Swing Trading, which is considered a short-term/medium-term type of trading with small profits and a continuous source of income, of course, depending on the skills of the trader and its efficiency.
Understanding the basics
For people who know nothing about trading, I’ll talk about it as simple as possible to move on with the next topics. Simply put, trading is all about investing in goods and stocks, which may vary greatly depending on the market you decide to swim. You can invest in currencies and e-currencies as well, and this was rather popular a few years back.
The main objective is trying to trade those investments of yours for other goods that are worth more. For this, you’ll have to hold your stocks for different time frames. There are different categories of trading strategies: short-term, medium-term, and long-term, each one having its own pros and cons to talk about.
Among these strategies, you can find different types, with some including pairs trade, social, day and swing trading, scalping.
Some types are friendlier towards newcomers than others, for example, scalping is well known for being rather frenetic and fast-paced, which might stress out people who know little about charts and analytics, whereas day trading might be perfect for beginners to learn and understand information flow and changes of the market while taking decisions on where to invest.
Overall, how profitable trading can depend on several factors. You’ll have to make some decisions before you start gaining money, and some are related to the website, app, or platform you decide to use, how big your initial investment will be, and the type of trading strategy you decide to go for.
Of course, there’s something important you have to always keep in mind, and that is the fact that trading has its risk. You might lose money, but you also might earn money. It all depends on how much you’ve researched the market you decide to go for, your knowledge and experience with it, and how well you can analyze data to predict market changes.
That’s why traders often become better as they invest time, effort, and of course, money, to grow because they start to understand analytics much faster and efficiently, they make better decisions, and they can foresee stuff beginners might not be able to predict.
Researching and studying are also important parts of the process, so you’ll need to read guides and reviews every now and then. I actually recommend people to have a Trading Review site have a way of getting the most recent news and changes in their markets of preference.
Swing trading might require you to pay attention to the flow of the market over a couple of days, since as it names refers to, you have to pay attention to the swings of currencies, commodities, stocks, among other goods.
These swings happen on a daily basis and are mostly present in the busy hours of the day inside the trading community, but you might have to hold your investments for a couple of days or weeks until you find a profitable trade to engage in.
The good side of this type of trading is that, for people who have other responsibilities and don’t have as much time to invest in it as they’d like to, swing trading allows them to still give it a try without compromising themselves too much.
This is different from other types of trading such as scalping, which requires you to be constantly paying attention to the market flow due to its fast-paced nature, and that’s why beginners often go for this type of trading.
Understanding the pros and cons in comparison to other methods
As mentioned earlier, swing trading has its advantages and disadvantages, but it depends entirely on the person. Let’s compare it with other trading method known as day trading, and you’ll better understand what I’m claiming.
Deciding which one is better is difficult because each trading method might attract different people. If you want to check more detailed information on the matter, you can visit: https://www.dailyforex.com/forex-articles/2011/06/swing-trading-advantages-and-disadvantages/8182, or read about the great number of techniques used for trades.
Ideally speaking, you should be prepared to learn and study a lot, and understand the logic behind this activity, as well as learning how the market you choose works. It’ll require patience and discipline, but as long as you remain consistent and play your cards smart, you’ll see profit one way or another.