How to Start Swing Trading in India

You can begin your swing trading that gives short term returns with low risk, in fact, it is one of the best trading styles in the stock market.

Before starting swing trading, you must understand the broader context of swings, and also follow a few expert tips that can support you in times of unpredictable volatility.

In a broader context, when you are determined to make your income on swing trades then the best way to make money is to avoid pitfalls in short term returns and continue to take advice as per the stock market gurus’ recommendations.

Avoid Pitfalls (losses):

Never begin your swing trading business on credit. This will ruin you the moment you tend to make losses in swing trading. Therefore, to avoid such risks, begin your trades with virtual money on paper trading sites.

To avoid loss, implement stop loss in every trade that you undertake and always sell out a losing stock or else you can lose your trading capital unnecessarily.

In swing trading, try to maximize your gains that in turn minimize losses, and to hold your profits you should apply trailing stop loss.

Market conditions may not favor your stocks, do not overtrade in such circumstances, your losses may engulf your earned profits until then.

Remember, When you reach a losing position, exit at the earliest and wait for the next opportunity.

Caution for Healthy Trading:

In a single trade, do not lose more than 2% to 3% of your trading capital. For instance, your trading capital is one lakh then your loss on single trade should not exceed 2-3K.

Do’s:

You may be tempted to draw expert advice from various quarters of stock market businesses. Be careful, when you seek advice, contact a well known stock broker or a brokerage company for queries and then decide on making your investment.

These advisors must have sought recognition from SEBI and they must possess credibility, and hold authentic values.

Dont’s:

You will find several advisors on social platforms such as Facebook, Instagram, etc., do not rely on them, you can be misled by exposing wrong charts, and trading signals that can eventually lead to a loss.

Later, legal support may not be able to pull you out of financial matters.

 Tips to Succeed in Swing trading:

Being a beginner in swing trading does require an element of caution and preparedness to adopt the techniques to avoid financial losses.

Utilise the trading capital in investing different portfolios and follow the technical indicators which caution in trade movements.

Make use of a hedge on your stock investments and agree to risk money that is affordable to you.

Always Place Stop Loss Orders

Experts do recommend a specific range and you are advised not to enter or exit beyond it.

Stop Loss is a technique used to control the losses when you option put the bought stocks they can drop down drastically and move downward lower than the bought share price.

In such a situation, the price at which you set a stop loss can enable you to avoid losses when an option put is executed.