Brad Vitello Posted October 8, 2020 Share Posted October 8, 2020 Hi, I would like to know about pros and cons of swing trading. Quote Link to comment Share on other sites More sharing options...
0 Fernando Cortez Posted October 9, 2020 Share Posted October 9, 2020 Hello, thank you for your question! Many swing traders trade by assessing the risk and reward ratio, then according to this formulate their strategies and place stop-loss orders, with prediction where and when they can prevent the loss, and where and when they can turn a profit. For example, if they are risking $1 to make $3 that is a favorable risk to reward ratio while risking $1 to make $1 is not. Swing traders rely on technical analysis, which provides them with raw data based on previous historical values, that can approximately predict the price range and its movements, but if traders want to get in-depth knowledge they turn to fundamental analysis, which is more hands-on experience. So the advantages and disadvantages of swing trading are: Advantages: Requires less time to trade than day trading Maximizes short-term profit potential by capturing the bulk of market swings Traders can rely exclusively on technical analysis, simplifying the trading process Disadvantages: Trade positions are subject to overnight and weekend market risk Abrupt market reversals can result in substantial losses Swing traders often miss longer-term trends in favor of short-term market moves Quote Link to comment Share on other sites More sharing options...
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Brad Vitello
Hi, I would like to know about pros and cons of swing trading.
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