Just how profitable is swing trading?

This is for talk radio t-shirt readers who are very serious about making money in the stock market.
Hi everybody,
One of my readers recently turned me on to Jason Bond over at Jason Bond Picks.
He teaches Swing Trading techniques. If you’re not familiar, it’s a very profitable method of making money in the stock market.

Here’s a quick tutorial;

Swing trading is actually one of the best trading styles for the beginning trader to get his or her feet wet.
It offers significant profit potential for intermediate and advanced traders. Swing traders get enough feedback on their trades after a day or two, to keep them motivated.
While trend trading may offer a greater profit potential if a trader is able to catch a major market trend of weeks or months, few traders have the discipline to hold a position for that period of time without getting distracted.


On the other extreme, day trading, trading dozens of stocks per day, may just prove too much of a ‘Pepto-Bismol’ ride for most of us, making swing trading the perfect medium between the extremes.
Swing traders sit in the middle between day trading and trend trading. A day trader will hold a stock anywhere from a few seconds to a few hours and are out by days end.
A trend trader looks at long-term fundamental trends of the stock and will hold the stock for a few weeks or even months.
Swing traders sit somewhere in the middle, holding a stock for a few days to a few weeks.
finance (1)

While it may be stating the obvious, the key to successful swing trading is picking the right stocks. The best candidates are large cap stocks.

Those that are some of the more actively traded stocks on the major exchanges.
In an active market, these stocks will swing between broadly defined high and low extremes, and the swing trader will ride the wave in one direction for a couple of days or weeks only to switch to the opposite side of the trade when the stock reverses direction.

Why it works for a lot of people:

Swing traders are not looking to hit the home run with a single trade and when it comes time to take profits, the swing trader will want to exit the trade as close as possible to the upper or lower channel line without being overly precise.
When it comes to good stock trading information, there is an investment. Solid investment advice is worth its weight in gold.
You can get more information on Jason Bond here.
Good luck and do remember, do your due diligence.

About Author

Leave A Reply