It’s an easy question to answer, and with the rise of the Internet and the proliferation of trading software, it’s easy to find some data to back up the numbers. And the numbers show that swing traders are making money. But you’d be wise not to start investing your own money and trading for fun just yet.
“There’s not really much evidence that they make money,” says John Sponaugle, director of corporate development at Cantor Fitzgerald. “I think it’s a little bit of a bubble in some cases. And I just think it’s best to not try to ride the wave at the moment.”
Stoning and Stealing
To make more money, the swing trader takes a similar approach as those who steal.
With a little bit of luck and an eye for detail, swing traders build a winning portfolio through data on a variety of stocks and bonds.
This involves not only looking at data closely but also getting data. This doesn’t mean that traders look at stocks like the stock market itself. Rather, the trader often will read the research reports available on a company’s website and pick the stocks he or she wants to buy.
And this has worked so far, according some economists. For most of the past six decades, investors have been willing to risk a bit of money when the markets were down and willing to pay off with less in the long term than the market has yielded in the short term, says Joseph Gagnon, chief investment officer of the U.S. investment research company Horizon Investments.
These types of investors are called “value investors.” Over the long term, Gagnon says, the market has been about 10 percentage points more volatile, which means they paid off with 20 percent or less — and thus, the rest of us had a much firmer grasp on where to put our money.
Those gains, Gagnon says, are what make the market “efficient.” It’s not about making high returns over time; it’s about making money now.
The advantage of value investing is also that it offers diversification, which can give traders a long-term advantage when they trade in risky markets. Stealing the market, however, does not necessarily guarantee a long-term gain.
Another issue facing value investors is that, because trading is online, there’s less risk that they will stumble onto a bad trade.
And of course, the best-case scenario is that swing traders can
swing trading practice, swing trading indicators, warrior trading swing trading course, responsible day trading review, best online stock trading courses in india