Swing Trading is Better than Investing

If you are looking for high returns, then swing trading is definitely a better choice than investing but at the cost of a risk in comparison to investing.

You must understand the basic operating features of saving, investing and trading before you consider swing trading better than investing.

Saving, investing, and trading in the financial sector have a specific discrimination and are applicable in different instances.

For instance you need to save your earned income, if you are supposed to use it for immediate needs such as daily amenities.

While investing should be employed when you can set aside a considerable amount to make some profits. However, you may lose more money (penalty) if you intend to withdraw your invested money (mutual funds) at a premature stage when compared to saving like Fixed Deposits.

Swing trading is a step beyond investing and you can think it over when you want high returns and are decided upon to take a certain degree of risk. Other parameters that include if you entertain trading is, preferences, risk tolerance, and stock market volatility.

Factually, if you have the guts to play risk in the stock markets then you can earn more profits, say 5% to 10% per month, effortlessly keeping in view the risk factors when you are in a trade. So, remember, although swing trades form a kind of trading style in stock markets involving high risks when compared to investing, do adopt it only when you find it comforting.

However, in a broader context you should adopt swing only if it suits your preferences, personality, objectives in a given scenario.

Comparison between Swing Trades & Investing

Period of Investment:

When you are into investing your money is in position for weeks, months, or even years. In case of swing trading you can hold positions for a few days to a few weeks.

In contrast to investing, swing trading will need more time, discipline, more time to monitor markets to adjust the positions.

For a short period, swing trading will generate higher return which involves higher risk, commissions, and costs than investing.

Swing trading is dependent on technical analysis and generates short term returns on the stock volatility. In investing, you will have to check on the fundamental analysis before you invest, validate its long term performance, and possible increase in the value of the underlying asset.