If they could they would. For example if you buy a stock at $90, and it dips, you make $90. If you sell it at $82, you now make $95 from the profit you made from the price drop. That makes it look like swings are profitable for swing traders. In reality they make more money selling the stock at the lower prices. Why? Most swing traders are good at buying and selling stocks at the lower prices. When the price is low their profits are high. On a short term trend you make more money selling the stock at the lower prices because it is easier to profit by getting into the trend, and also in a trend you can profit more when the price is going down from a higher than normal price.
How do swing traders make money by picking the winning stocks? You are just as likely to get into a trend as you are to get out of a trend. The best way to do this is to do some research prior to putting your money into the stock. You may be aware of other investors who are doing the same thing. It is also important to get out of the stock when its low prices for a few days. The more you are at the lower end on lower lows the more you will profit.
Why is it important to take a risk? There have been many stories of people buying stock when it was selling for $25, and when it was worth $50 they were able to make $3,636. Why not go in there for a short term trade when the stock is at $45 dollars, and instead get a stock that is worth $120 dollars, or more? It will have more upside when it is actually at $120 dollars!
What is a swing trade? When you buy or sell a stock you have two very different options. When you buy a stock you can immediately stop the trade. If the market goes to zero you get no money. If the stock goes up you start out by selling the stock.
When you sell a stock you don’t stop it immediately. The stock must go back to zero, and the money you made from the trade goes into your bank account. This allows you to continue to invest your hard earned dollars in the stock. In this way a swing trade is a way of buying and selling a stock without actually taking the risk of losing your money.
How long can you go in at a trade? The longer you can go in this trading style the more return you will earn.
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