Why You Should Consider Swing Trading Stocks
What if you could pull money out of thin air? Would that be of interest to you?
Unfortunately that is impossible! But there is something that comes close. . .
What is it? It’s trading stocks on the stock market.
Have you ever seen those contests where if you win, you get to enter a glass booth to grab as much money as you can? It looks like one of those old telephone booths but there is no telephone.
Instead, there is a bunch of money in it and there are jets of air that blow the money all around. The contestant is given like five minutes to grab as much money as he/she can while the money is blowing all around them. Whatever, he or she grabs, they can keep. Sounds like fun doesn’t it!
Well, trading stocks is something like that. People are buying and selling stocks from everywhere in the world on a daily basis. All you have to do is put yourself in a position to grab some of it.
However, most people don’t know how to do that. Many people think that it’s too risky, too complicated, too time-consuming. Actually, it is none of that. At least not if you know what you are doing and you do it correctly by following some basic fundamentals.
There are three popular styles of trading: day trading, long-term investing, and swing trading. Day traders study the market on a minute to minute basis, taking advantage of the daily price fluctuations. A day trader may buy some stock in a company one minute then sell it within 10 or 15 minutes.
Long-term, investors study the underlying fundamentals of a company stock to determine if that is a company that is likely to demonstrate long-term strength. This is the Warren Buffet style of trading. A fundamental investor may buy the stock and hold on to it for years.
A swing trader will study the charts and the price fluctuations using “technical analysis”, then predict if the stock price is likely to go up, down, or sideways. With swing trading it is possible to make money in the stock market regardless of which way the market is moving. Swing trading is a classic strategy that involves holding stocks for a short period of time- typically from a few days to a few weeks.
In this post, I’m going to share with you 10 reasons why you should consider “swing trading” stocks:
1- Trading platforms are FREE and include Real-Time trading.
Back in 2004 when I first learned to trade, you had to pay $350-$500 per month to use a trading platform that would give you real-time quotes. Today you can get a professional trading platform with real-time quotes for FREE! You just have to open an account with Schwab, E-trade, Robinhood, or other trading company. (I personally use the “Think or Swim” trading platform with Schwab).
2- ZERO commissions for trading
When I first bought some stock, I had to go to a broker who then bought them for me for a commission. I could not buy stocks on my own. I had to go to a live broker who charged something like $20 for each trade. Often, the broker would try to steer you to buy stocks that they themselves did not own!
Then, when the internet came into being in the 1990s, you could buy stocks online but it cost you commissions of about $7 to buy and $7 to sell. Those were costs that had to be included in the trading calculations. Each wrong trade could cost you $14. It was easier to lose money.
Nowadays, there a NO commissions charged, so you can buy and sell as many times as you want and you are not charged a fee. So, it’s easier to make money, and less risky.
3- FREE training for trading and investing
To learn how to trade correctly, I had to attend several workshops. The introductory workshop cost me $350 dollars to attend. The intensive advanced workshop cost me $7,000 dollars!
Today, you can get much of the same trading instruction for FREE! The trading platforms provide regular webinars where they teach you trading and investing A to Z. You can also find very good training on YouTube.
4- Trading does not require a big budget.
Trading does not require a big budget to start. A beginner can start with a couple thousand dollars. There are stocks that sell for $5 or less and there are stocks that sell for $100s. You get to choose which stocks fit your budget and how many shares to buy.
5- Relatively Low Risk
When you learn the fundamentals and learn how to trade correctly, the risk is low. One of the most basic rules is that you never risk more that 2-3% of your trading budget on any one stock. You will learn how to use “stop-losses” to minimize the risk.
A person can also Paper Trade for FREE without risking any money until you get some consistency in making winning trades. Furthermore, you can lose money on 40% of your trades and still make money long-term.
6- You maintain control of your finances.
You don’t have to go to a live broker, or consult with your financial advisor to trade stocks. You can do your own research and analysis, and make your own decisions about what is a good stock to trade. It is likely that you will do better than the broker at predicting winning trades.
7- NO website, NO sales experience, NO inventory required
If you want to start an online business, most often you will need to have a website. You will need to promote a product or products. In addition, you will need to learn digital marketing.
Trading does not require any of the above. You don’t see the product. You can’t touch the product, but you can own the product (shares in a company.) Therefore, you can benefit from the company’s financial successes or failures.
8- NO social media or marketing required
Trading stocks does not require that you master ad creation on Facebook, Pinterest or Instagram. You don’t need to learn copywriting, email marketing, or do Youtube videos.
You don’t need to create a huge number of followers on social media platforms. (Unless you’re Kim Kardashian) You can just determine your trading parameters and “set it and forget it.”
9- You can trade according to your comfort level and preferred style.
Some people will buy stocks and hold them for the long-term. Others will buy and sell stocks every few minutes. (Day Traders)
There are also those who buy and hold stocks for several days or weeks before they sell. (Swing Traders- my preferred style) You decide which shares to buy and how many shares to buy. You decide when to sell you stocks.
You can choose the style of trading that you are most comfortable with.
10- You are your own boss.
You can choose to trade on a part-time basis, or perhaps as a hobby. Or, you can do it as a full-time job. No licenses required.
You can also trade anywhere in the world as long as you have a computer and an internet connection (a “laptop lifestyle”) Another advantage is that you can transfer money from your brokerage account to your bank account so you can spend it within a few days.
As you can see, there are several good reasons to consider trading stocks. Is there risk involved? Absolutely! However, it can be minimized and controlled so that you don’t lose your shirt. You just have to follow some trading rules and stick to them.
Does it require learning new skills some which may be technical? Absolutely! But, you can take it at your own pace and there are mentors who can teach you what you need to know to trade safely.
Personally, I get a kick out of trading! When I plug my numbers in and I get a winning trade after buying or selling the stock, the feeling is addicting! It’s a great feeling to see that my account has grown by $50, $200, or $1000 dollars or more within a few days!
It’s like pulling money out of thin air!
“The driving principle of the swing concept is that you deal only in stocks that are already moving in an established trend- and you open only those positions, either long or short, that will profit from a continuation of that primary trend. Thus, whether experienced pro or swing novice, you have strong market forces on your side in every trade you do.”- Larry D. Spears, Author- Swing Trading Simplified
I encourage you to take a look at this money-making strategy that is creating income for many people around the globe.
Trading in the stock market could transform your financial future!
Here is an excellent resource to get you started:
This post may include affiliate links. If you buy something through one of those links, I may earn a small affiliate commission at no cost to you. I assure you that if I recommend something, it is because I believe it will be of great benefit for your personal development and success. I also just need a little wine! Thanks! 🙂
David C Figueroa- Success Coach
P.S. Many people are prevented from being successful swing traders due to limiting beliefs, fear, or self-esteem issues. Here’s a FREE webinar that will help you to overcome these obstacles:
7 Brain Experts Reveal The Most Powerful New Techniques To Let Go Of Limiting Beliefs, Fears, or Self-Esteem Issues That Are Holding You Back From Achieving Your Financial Goals And Dream Life
Click The Banner Below To Reserve Your Seat For The FREE Brain-A-Thon (Webinar) Event That Could Change Your Life!
Photo by Adam Nowakowski on Unsplash
Image by Csaba Nagy from Pixabay