Essay on Swing Trading of Simplified Trading techniques for Good and Bad Times

There are various strategies to deal with the losses or to gain returns in the trading field, and it is up to the choice of a trader that which strategy is suitable for him/her. The situations can be different as well as the mindset of the traders, so it is important to understand that in every given situation, a trader will analyze different factors to make a viable decision regarding his/her strategy. One such strategy is called Swing Trading. It is vital for traders to understand what swing trading is. It is a strategy, which basically has its focus on getting smaller returns or gains in a short period of time so that profits can be earned, as well as, any losses can be recovered. It is good to know that returns are made with the help of this strategy, but they will always be smaller in percentage. Moreover, if a trader has the essence of identifying different market factors to adopt a swing trading strategy, then these smaller profits can turn into handsome annual returns in the end. Mostly, such a trading position is taken for a period of around two weeks, but it can stay longer as well, depending upon the situation of the market. So, it means that when a trader targets the market with swing trading, he/she does not go for 20 to 30%, rather the objective is to get returns up to 5 to 10%. So, if you are looking to make handsome smaller returns in the market, then swing trading is the way to go.

Pitfalls and how to avoid of Simplified Trading techniques for Good and Bad Times

If any strategy is adopted in the trading business, then it is vital to keep in mind that every strategy can have its pitfalls. That is the case with Swing Trading as well. It is not that traders will always have a win-win situation with swing trading, but they can also face great risk if they make any wrong decisions. It has been observed that swing traders make a few common mistakes when they go with the swing trading method. So, it is critical for them to identify those mistakes so that mistakes can be avoided. The first mistake made by swing traders is that they always keep watching the market with a closer look. They will always analyze the stocks and prices all day long, whereas even stocks should be given some space to breathe. The other mistake made by swing traders is that they keep making small decisions without any proper thought process. They do not think much and make immediate decisions, which may pay off, but when such decisions go wrong, they can be disastrous. Traders must understand that trading is a serious business, which requires a lot of skills, though the process, as well as, patience. You have to be disciplined in your approach along with showing great patience. Swing traders lack such attributes, and when they make decisions, and it proves them the wrong majority of the time. One more pitfall of swing trading is that the traders just focus on profits and returns. They think that small moves would be good enough to earn profits, whereas there are always some risks to look for. They don’t manage risk and trapped in the worst situation. If traders want to become successful traders, then it is viable to adopt a risk managing strategy. Swing traders can avoid all of these pitfalls, by making a proper trading plan. They should involve a lot of thought process, as well as, research so that the right decisions are made in the end