Is it possible earn 20% a year swing trading stocks.

F

Fate

Like the title says, I'm thinking about swing trading stocks using the standard indicators like RSI, MACD, Stochastics. to buy Small to mid-cap stocks (not penny) low, hold on to them until I get a sell signal (roughly 3-8 weeks), and sell for a small profit.

How likely would this be for an average person not a professional or insider to make 20%? (not saying my odds but a swing trader that knows what he is doing)

I'm just wondering if I should give this a try because If someone who knows what they are doing can't make 20% or so a year then I don't know if it will be worth it for me to even try to invest.

Please leave any feedback if you can. Thank you so much.
 
The longest time you would need is 16 days. By trading a this rate and NOT compounding you can do 15 years at your requested level in one year of real market time.

People from fifth grade on up have this potential. Girls are better than boys for reasons of heritage and genetics as I see it.

My best single profit segment was 17 points net on 100,000 shares. The price shift was from 11 to 28 roughly speaking. (Biotech stock using a herd of goats to make a pharma).

Google a one pager entitled: "Unusual Volume". Use the top 1/3 of the page.

You will need to have a cellphone or laptop.

You will have to send a message to buy and a message to sell once every 4 to 8 days. In the evening bout 15 mins of work is required. You press a button and write down the button pressing results.

Do you have a daughter or at least a son who could teach you??
 
PlinytheTrader said:
Are you planning on using leverage or a cash account? Do you have any sort of experience or track record of successful swing trading?
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As you can see from his OP he has been taken in by CW and is emotionally caught in the usual anxiety, and fear of CW. He thinks a person has to make money very very slowly.

Do you use Roman numerals for doing Arithmetic? Why didn't the Romans have a place holding concept?
 
In a strong rising market that goal is easy. I did about 30% last year in small caps, reg T no leverage (taking profits way too soon, argh) just using subjective "buy the dip" methods on up trending stocks.

Note the key phrases: "rising market" and "up trending stocks" - two conditions that are now going out of season. 2014 is shaping up to be a more difficult year.

*edit- just saw you're an "average" person without a lot of experience. In that case I would get a good subscription service (or five) and keep the one that comes out ahead. I'm in my fourth year as a trader and the Gurus I hired in the beginning really sped up the learning process. The least serious looking Guru whose website looked the most like a scam ended up being the best. He had a method that I hated and refused to use, until 3 years of losing money changed my mind :eek:
 
Fate said:
Like the title says, I'm thinking about swing trading stocks using the standard indicators like RSI, MACD, Stochastics. to buy Small to mid-cap stocks (not penny) low, hold on to them until I get a sell signal (roughly 3-8 weeks), and sell for a small profit.

How likely would this be for an average person not a professional or insider to make 20%? (not saying my odds but a swing trader that knows what he is doing)

I'm just wondering if I should give this a try because If someone who knows what they are doing can't make 20% or so a year then I don't know if it will be worth it for me to even try to invest.

Please leave any feedback if you can. Thank you so much.
More...

20%, that's more than twice the average yearly return of the S&P 500.

Fact: most hedge funds cannot even beat the S&P 500.

It's still doable but you will need some leverage and a winning trading system.
 
20% can be done in a month. I have done over 50% once in 30 days shorting pump and dumps during a market pull back.

As for your technique...............

Good Luck!

You are going to need it. Indicators are a false guide using information that lags and is ever changing. By the time you get a clear signal the trade has already missed half of the move. And by the time you get a sell signal you are in the hole big time...
 
Satan's Helper said:
20% can be done in a month. I have done over 50% once in 30 days shorting pump and dumps during a market pull back.
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You can make 100% return in less than a minute in the Forex market, after an important financial report (NFP, FOMC, etc...).

The problem/question is, can you do it consistently and without huge drawdowns, month after month, year after year?
 
xelite777 said:
You can make 100% return in less than a minute in the Forex market, after an important financial report (NFP, FOMC, etc...).

The problem/question is, can you do it consistently and without huge drawdowns, month after month, year after year?
More...

I consistently make 1% a day net on trading highly volatile small cap stocks. BUT it is on a small account with thinly traded stocks. The catch is I sometime have trouble getting even a 100 shares. It is consistent easy money that is better then working. I will never get rich but I can pay my bills.

My account averages 2 down days a month with very small draw downs.
 
People have trouble with the concept of achieving a certain return versus being able to do it consistently.

A monkey throwing darts can make 20% in a bull market. Few if any fund managers have been able to average it over a significant period of time.

I am certain that using the indicators you mentioned will not be the ticket.
 
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