A lot of them want to carve a place for themselves in the stock market. For those who are new to this domain, they don’t want to risk themselves with a tougher mode/style of stock trading. There are a lot of factors to prove that stock trading is a good start for stock market newbies. When you analyse the pros and cons associated with a particular product/service, it is very easy to designate.
Pros of swing trading for stock market newbies:
The following are the pros associated with swing trading for stock market newbies:
- Less Time consuming
The time consumed for swing trading is not too high. The hours spent by a swing trader in front of the screen is way too less as he hardly spends 10 minutes each day to know where his stocks stand.
- Overtrading is not possible
When you spend a lot of time before the trading screen, there are chances that you might overtrade. But in the case of swing trading, this is not possible at all.
- Fewer fees
The traders who swing trade don’t charge a large amount of money from the ones who wish to trade. For those who are new to the stock market scene and don’t wish to spend huge amounts, then going for the low fees strategy is one of the best things. eToro fees for example are low but it would be wise to know them before trading.
Cons of swing trading for stock market newbies
The following are the cons associated with swing trading for stock market newbies:
- Averting overnight risk impossible
The risks associated with the stocks are high all the time. That too in times of pandemic, it has become a really hard task to avert all the overnight risks. In the case of day trading, where everything happens in a day, overnight risks are not possible. But when considering swing trading, overnight risks can’t be avoided.
- Benefits from Trend days
There are certain benefits associated with trend trading where the value of stocks rises up in a particular trend. With swing trading, obtaining the benefits from trend days is not possible.
So, one can see that swing trading is best for those who don’t want to invest large all at first itself. There are certain downsides associated with it which is only seasonal.