Swing Trading Vs Investing: Which Is Better For You – DataDrivenInvestor

Photo by Chris Liverani on Unsplash

I see young people continuously pouring their money into the trading account and flushing out their whole amount in the F &O.

Why I’m more critical about the F&O part, is because it will make you poor in a single month.

I’m not telling you to stop trading in the Stock Market, I see many people trade in the Market without proper knowledge and guidance.

You will not make a profit by taking a random position in the Stocks. Many people are making the stock market a gambling point.

When you buy a phone, you look at its specification and uniqueness. But, when it comes to the stock market, you forgot to do research, this impact you at a higher level and you lose a lot of money due to lack of research.

Now, come to the point, which is a good option for you swing trading or investing?

Some people prefer trading to invest because they know the market and they have experience in the Market. Some choose to invest where they stay in the market for the longer term.

What is swing trading?

Swing trading is a trading technique where you buy at low and sell at high. Swing trading consists of buying stocks at lower prices when markets are down and then selling them when the market goes to an overbought condition.

Swing trading helps you get good returns in the lower period. Many people do swing trading to get more returns than traditional investing Methods.

  • Even if you make more money in swing trading, it is not easy to put up your position overnight as it is riskier if something happens in financial markets.
  • Swing trading is profitable if you have the proper knowledge. I have seen many people lose their money by following the swing trading mechanism blindly.
  • Swing trading gives you more returns than investing, but the greater risk comes with good returns.
  • Swing trading needs more attention and needs to analyze charts, unlike investing where you hold an amount for a more extended period.
  • In value investing you invest money in the market to get returns over time.
  • It means, you invest money for years and hold a position even if marketers are going down.
  • Investing is the safest option if you want to make moderate returns with no risk, whereas in swing trading you take more risk.

You can make money in both swing trading and investing. People make more money when they do swing trading in the market.

If you are a young investor, you can go for swing trading, if you’re at retirement age, investing is the best option for you.

Note: This is not financial advice, please do your research.

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