Swing Trading means buy and sell shares for short term and get full benefits of whole swing of any stocks. Trade market in volatile condition is not easy for traders many traders loss money in this situation because they apply same strategy in any condition that’s why they loss money in volatile market.
Making money in trading is very hard very few people make huge amount of money in trading. SEBI publish research report few days ago and that report was shocking because only 10 percent traders earn money.
How Swing Trading Works
Swing trading is a style of trading in the financial markets that involves holding a security for a short period of time, typically a few days to a few weeks, in order to capture price swings or “swings” in the market.
The basic idea behind swing trading is to buy a security when its price is low and sell it when its price is high.
Swing traders typically use technical analysis to identify trends and potential price movements in the market, and they may use a variety of technical indicators, such as moving averages, trend lines, and oscillators, to help them make trading decisions.
Swing traders typically focus on price patterns and trends, and they may use a variety of trading strategies to capture short-term market movements.
Stock Market Calculator :- CAGR Calculator
Best Strategy To Trade a Market
First check market direction suppose market was in bearish condition then stop trading in market and wait to get market in bullish phase. After market getting bullish confirmation then enter with your 50 percent capital in 2 stocks.
Why only two stocks and how much stock we need to add in portfolio ? answer of first question is if you add more than five stocks in 50 percent of capital then you invest small amount in 5 shares and they rise then you earn very little profits that’s why you need to add 2 stocks first.
Secondly minimum 5 stocks is enough for whole capital because they give best returns out of market. this is backtested strategy for more than 2 years.
Buy every stock at reversal means stock show bullish confirmation then wait for stock to go at resistance and sell it.
How many stocks we need to sell ? sell all stocks at once because when you sell only profitable stocks and hold loosing stocks they you loss more money than making.
Sell stocks at 5 thousand and 10 thousand profits.