Kotak Securities Kotak Securities Ltd is one of the oldest and largest stock broker in India. We offer you investing facilities in various instruments like equities, derivatives, currency derivatives, Mutual Funds and IPO, through our branches and the internet. In addition to this we have a full-fledged Research Team with years of experience in the industry.

All You Wanted To Know About Swing Trading

1 min read

“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.” – Warrant Buffett.

Perhaps, when it comes to the stock market, there are definite advantages in arbitraging. This means that not only will you be able to reap the benefits from the stock market in the event of a short term gain but also be able to choose from a reasonable long position. Swinging trades towards your bank account is the newest thing to take over the stock market. With swing trading, traders and investors get the best of both worlds.

swing_trading

[wp_ad_camp_5]

 
Getting Jiggy With It –Swing Trading

It’s not always easy to ride the momentum of the day trades, and too inconvenient to wait for long trades to mature. One of the most attractive and popular trades are the swing trades. Swing trading is the ability to take the advantage of short price swings that occur for more than a day. One is sure to enjoy the profits from the trend in short term and avoid the volatility of the day return stocks.

What does a Swing trader do?

  • Striking when the iron is hot:They are very different from a day-trader, they trade on stocks that are traded over a period of time, and this usually includes more for a few days or weeks. Their decision to withdraw or reap the benefits of the stocks depends on the volatility of the stocks.
  • Call it investing on the momentum: Another word for swing trading is momentum trading as the trades are made on the basis of the momentum of the stock market.
  • Can’t wait that long to earn money: By investing money for the long term, there is no guarantee that one will actually benefit from holding onto the stocks for the long term. Within a short period of time, the returns that one can gain are much more than that expected by the long term returns.

Looking through the magnifying glass- Swing Trading

The waiting period of those investing in swing trading is lesser compared to those investing for the long term. Yet, there are other factors that make swing traders different from the rest.

  • Swing traders jump into action after the correction and consolidation takes place within a short period of time and not the long term.
  • Swing traders have the advantage of making a quick move after the correction period is over and reap the benefits of this phase.
  • Ideally, swing traders jump into action within a span of 2- 7 days which means that they reap the benefits of the stock market at a possible gain of more than 10-20%.
  • Swing traders can repeatedly invest and swing profits within the short span of time by short selling stocks.
  • Swing traders are devoid of any hype and rely completely on the daily and weekly analysis to arrive at the decision to arbitrage stocks or not.

The decision to consider swing trading is entirely dependent upon you and your investors. Swing trading is largely popular amongst those who want the most of their stocks within the span of weeks.

To Know more about Kotak Securities broking service click here

Kotak Securities Kotak Securities Ltd is one of the oldest and largest stock broker in India. We offer you investing facilities in various instruments like equities, derivatives, currency derivatives, Mutual Funds and IPO, through our branches and the internet. In addition to this we have a full-fledged Research Team with years of experience in the industry.

15 Major Factors Influencing Stock Market Volatility

Market volatility refers to the level of fluctuation in the prices of securities, such as stocks, bonds, and commodities, in a given market. It...
Rajandran R
4 min read

Constructing a Delta-neutral strategy

In options trading, a delta-neutral strategy involves constructing a portfolio of long and short options and/or the underlying asset in such a way that...
Rajandran R
7 min read

What is Stop Hunting?

Stop hunting is a trading strategy that involves manipulating the price of an asset in order to trigger stop-loss orders placed by other traders....
Rajandran R
3 min read

One Reply to “All You Wanted To Know About Swing Trading”

  1. write something on money management as well as risk management, in fact these are the most important part (apart from trading strategy or methodology) of the successful trading.

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More