How to do Swing Trading with Little Money

Can you swing trade with little money? Why not…you can do so. But remember there are few commandments spoken by stock experts please do not ignore them. I would like to relate a few of them just to give you confidence, a ting of energy to begin with.

Can I start swing trading with 1000 rupees?

Yes, Even you can start swing trading with just 1000 rupees also. If you are a beginner then you will need a lot of research on the stock market stuff, therefore it is advisable to initiate your business with a little money. Usually, small amounts do minimize risk and you can seek good experience.

As you have decided to begin to trade, you must focus on low-priced stocks or ETFs to utilise your funds effectively.

If you purchase a stock, and hold it for a few days to weeks and sell it then you need to make a thorough technical analysis. Without which you will not be able to locate the right entry and exit points.

Plan your strategies to obtain realistic financial gains and make an effective usage of stop-loss orders to manage your trade in the volatility.

Try to apply Kill trade when you reach your daily set limit of bearing loss.

Develop a discipline that can enable you to adhere to your trading plan and keep a check on your emotions. Do not enter into revenge trading where you tend to lose a lot more than the limited loss.

Trade on Low-value stocks:

In swing trading, when you begin to trade try to focus on low valued stocks. Remember, you should risk from 1% to 3% of the trading capital.

If you plan to buy a stock worth of Rs. 800 then with the slippage approximation of 10 percent that comes to Rs 80.00 you must have a trading capital of Rs 8000.00.

But if you select the low value stocks that are progressive in stock markets it will benefit you. For instance, you purchase a stock that rolls over in the range of Rs 100 to Rs 150 then you can purchase about 8 to 10 shares of a stock.

Suppose if you buy a share of Rs 100 then your trading capital should be about Rs 1000. Therefore, the marketing funda in swing trading is to buy shares of low value when your trading capital is low, say something like Rs1000.

In case, you plan to buy shares more than your investment level then you can seek margins from your stock broker.

Margin is the amount covered by your broker when you are willing to buy shares more than your investment limits.

Usually, stockbrokers cover a margin amounting to about 20 percent of your trading capital.

View Key features for Stock Selection:

Normally, when you want to select a stock, you must visualise technical analysis, Fi-retracement, and the company’s profile, like objectives, financial conditions,etc.