- with swing trading, it is easy to manage take profits and stop loses because you can actually place your stop loss a bit further away from the market price to avoid getting stopped out prematurely and also your take profit targets a place a bit further away so that your risk to reward ratio are 1:2 or higher.
- swing trading is much easier to learn and do than day trading
- trading transaction costs due to spread are much lower than that of day trading because of less trades placed.
- you have a lot more time to analyse trades and then take trades and therefore swing trading can suit someone who has a day job.
- swing trading does not take a lot of your time…you can place your trade and walk away instead of baby sitting your trade like in day trading.
- Swing trading is much less stressful than day trading.
- Profits made a much larger than in day trading because you let your trades run of more than 1 day so the chance of increased profit much greater than in day trading.
- Swing trading allows swing traders to ride out the trend for maximum profit extraction using this best trailing stop technique
Swingtrading is better than intraday.
- Thread starter TTT
- Start date
If your good at daytrading it beats swingtrading by a mile in returns ... I made 1500% on my nano-account friday. Today I am up 70%. That's why the people who are really skilled daytrade untill they get into trouble with their size. Daytrading is much harder though ... but it can be done ...
@TTT, lots of strategies sound good in theory, but don't deliver in practice. I found no edge in swing trading other than "rising tide lifts all boats" I found it very difficult to do money management because most stocks triggered at the same time (during market pullbacks or over-reactions). I tried adding some short positions for balance and often got burned by both (longs went down while shorts went up). Obviously, just because I didn't find an edge doesn't mean it's not viable. I am simply sharing my experience.
Untill recently I thought swingtrading couldn't be but I stand corrected when I use some of the intraday stuff I am using on bigger tf's it works but be prepared to face large drawdowns. To me it looks like watching paint dry. But don't have a restriction yet on my daytrading size so those are troubles for the future.
How do you know if your system is good? Did you backtest it? Most single factor models have failed with the rise of quants.
It's 4 dimensional so backtesting is a futile endevour. However I see itt working in the markets. Same stuff works on es as well as dax