How To Start Swing Trading In The Indian Stock Market (2024)

A Quick Overview of Swing Trading

Swing trading is a short-term stock investment. The key elements of swing trading are timing and making profits by buying at a lower price and selling at a higher price. According toInvestopedia, “Swing trading attempts to capture gains in the stock market over the short term. Swing traders employ technical analysis to buy low, sell high and lock in profits.”

The returns are not guaranteed but will increase with good timing, research, and risk management fig. The average return of swing trading is said to be 10%. Of course, it is never possible for you to get these exact ures all the time. Although the overall performance depends on how you do your trades and how many trades you take part in. It can immensely help you achieve your monthly return easily.

In swing trading, you must have a solid knowledge of technical analysis. You should know how to analyze charts and think rationally. You have to do your homework and combine it with a bit of luck. Trading is always risky but with proper analysis, it can be rewarding. The key is to understand the market and trade accordingly.

Swing trading sounds like a very good idea but there are many questions about returns in such trades.

What would be your average return per year and month?

Everyone who has an experience in swing trading would advise you to aim realistically when setting a return goal. While aimless trading can be very profitable it is best to know what your average return per year and month would be. That way it can help you set your mind at ease when trading.

The market has a way of changing what is successful to make traders abandon their strategy. The key is to know what your average rate of return would be and then make decisions on whether they are good enough or not. A good strategy should be able to help you achieve your goal. Here’s a small glimpse of what the average return per year and month would be for swing traders.

What returns can we aim for in swing trading?

Having an idea about what the average return would be is one thing, but it’s another thing when you have to aim for the returns. You should always aim high because what is there to lose if you fail? Failure is just a lesson that makes you stronger at the end of it all. Our question to you is “Why to limit yourself?” Aiming high and achieving it will only help boost your confidence in trading. An 8% return is an attainable return.

Is it possible for an average trader to earn 6-8% returns per month?

It will be hard to achieve 6-8% returns per month with swing trading. It is hard but not impossible. Analyzing the market and doing your homework will help you achieve those types of returns. It is possible, but again, it depends on how you do your trades. Technical analysis will play a huge role in this and so will risk management.

Having an idea about what your average return would be can help you decide if 6-8% monthly returns are possible for you or not. Of course, achieving this is not easy but that does not mean it is impossible. Swing trading requires time and proper analysis to achieve the goal. How long it takes to achieve these returns?

One of the biggest reasons why people shy away from swing trading is that they don’t want the efforts and work put in to be wasted. No one wants that, but this is not a question about caring about your hard work, rather it is about making sure you match your goals with your ability. When setting up a monthly strategy for swing trading, you have to understand the market. You have to analyze charts and gather information on what the market is doing to understand what is going on and how you can improve it. Making decisions on when and where to pull in profits will help boost your returns.