Any thoughts on Swing Trading?

[Brotherwo]

Swing trading really interests me and with the art of compounding interest I feel it is a great way to make money.

Any one have experience in swing trading? What is your advice for me who is looking into this venture?

Mistakes that you made and I should try to avoid.
Advice on good practices or things I should try to do.

Thanks for all your advice in advance


Brotherwo

 

[Bryan24K]

you have to find what you're comfortable with, but most important, you have to make rules and stick to them. I would say the most important rule is limiting your losses. You need to pick a downside limit that works for you, whatever it may be, and always sell at that level regardless. The one time you hold on to a stock thinking it will bounce back, is the time the stock can tank real fast and wipe you out. Don't worry about those small losses, you can write them off against your winning trades on tax return. A lot of people have good ideas that work for short term trading, but they lose because they want every trade to be a winner. They may pick 4 out of 5 trades for a $1 profit on each, but the one loser that they didn't sell dropped $10+ and they're screwed! Write down some rules and stick to them like glue. Good luck!