Sharing my experience and thoughts on swing trading :>
First of all, many people have misunderstandings about swing trading. It is not an investment but rather a speculative activity that seeks to capture opportunities and time the market. Generally, swing trades last from a few days to a few months, and trend-following strategies are the most common.
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Here are some principles to consider for swing trading:
1. Leveraged trading is only suitable for those who can beat the market without leverage. Otherwise, it's just amplifying your losses. Beginners should start by trying without leverage.
2. Using leverage in swing trading "definitely increases the risk of bankruptcy," so you should be aware of your expected value, volatility, and the difficulties you may face in extreme situations.
3. Generally, you don't need to watch the market every day when swing trading. When you first enter the market, you may need to pay attention to stop losses, unexpected market movements, or reversals. After setting up your stop loss, you can start taking a break. I believe there are many benefits to keeping a suitable distance from the market because my initial intention for swing trading was not to let it affect my daily life.
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Without strict control over trading strategies, clear entry and exit conditions, and capital management, people may enter and execute so-called swing trades based on subjective perceptions, guesswork, arbitrary trading volume, and contrarian orders. "I call it gambling."
Before starting swing trading, you should ask yourself whether you are speculating or gambling, and recognize that short-term speculative fluctuations can result in huge gains or losses.
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.
.
In my opinion, long-term positive expected value speculation, with a sufficient number of samples, will eventually become an investment that generates excess returns.
I hope my article is helpful to you, and if you have different opinions, please leave a comment and let me know.🙂
First of all, many people have misunderstandings about swing trading. It is not an investment but rather a speculative activity that seeks to capture opportunities and time the market. Generally, swing trades last from a few days to a few months, and trend-following strategies are the most common.
.
.
.
Here are some principles to consider for swing trading:
1. Leveraged trading is only suitable for those who can beat the market without leverage. Otherwise, it's just amplifying your losses. Beginners should start by trying without leverage.
2. Using leverage in swing trading "definitely increases the risk of bankruptcy," so you should be aware of your expected value, volatility, and the difficulties you may face in extreme situations.
3. Generally, you don't need to watch the market every day when swing trading. When you first enter the market, you may need to pay attention to stop losses, unexpected market movements, or reversals. After setting up your stop loss, you can start taking a break. I believe there are many benefits to keeping a suitable distance from the market because my initial intention for swing trading was not to let it affect my daily life.
.
.
.
Without strict control over trading strategies, clear entry and exit conditions, and capital management, people may enter and execute so-called swing trades based on subjective perceptions, guesswork, arbitrary trading volume, and contrarian orders. "I call it gambling."
Before starting swing trading, you should ask yourself whether you are speculating or gambling, and recognize that short-term speculative fluctuations can result in huge gains or losses.
.
.
.
In my opinion, long-term positive expected value speculation, with a sufficient number of samples, will eventually become an investment that generates excess returns.
I hope my article is helpful to you, and if you have different opinions, please leave a comment and let me know.🙂