Disadvantages of Swing Trading ━━━━━━━━━━━━━ You can get w | Stock Market News
Disadvantages of Swing Trading
━━━━━━━━━━━━━
You can get whipsawed often. Just because the market shows support or resistance at a specific area, doesn’t mean they will be respecting it today. Also, anytime you place a trade, you are risking money. Because of this, as a swing trader, you are risking it more often. Odds are you will have losses from time to time, no matter how good you are.
You have to be well-versed in technical analysis. While not necessarily a “disadvantage”, it means extra work. Almost anyone can tell the trend on a chart that is going from the lower left to the upper right over time, but someone trying to swing trade that chart needs to identify entry and exit points. This is something technical analysis can do, but you need to learn it first. This takes time.
It takes a different mindset than long term trading, and more nerves. While it isn’t necessarily scalping, the swing trader does run the risk of being “spooked out of the markets” as pullbacks in these smaller ranges appear to be more violent than to someone looking at a weekly chart. This is a psychological issue, and one that most traders will eventually have to deal with during their career.
━━━━━━━━━━━━━
@Market_Share
