Swing Trading

Swing trading is a type of crypto trading that involves taking a short term position in the crypto market in order to gain profits from the price change or "swing" of a coin. It is some times referred to as speculative trading as the crypto market is so volatile, it involves taking a greater risk than long term trading.

Swing trading involves taking a position usually for one or two days and capitalizing on the fluctuations that occurs during this small period. Even though the returns on this type of trading is small, substantial profits can be gain by using it over and over again.

Advantages of Swing Trading

Although Swing trading have risks, it has its merits:

• Profits: Profits can be made within days or even hours by using swing trading.

• Trends: If you have experience and skill in identifying crypto trends, it is easy to make profits using this method.

• Time: As compared to day trading, it takes less time to trade.

Disadvantages of Swing Trading

Because of its speculative nature, swing trading comes with great disadvantages to consider:

• Market Reversal: The volatility of the crypto trade may lead to abrupt market reversal which can cause major loss.

• Time: Unlike long term trading, you have to dedicate large amount of time for swing trading.

• Illegal pump and dump schemes: You might fall victim to Illegal pump and sump schemes when trading.

• Trading Fees: Trading fees adds up when using this method and might affect your profits.

• Hacking: Since you have to access your wallet a number of time when involved in swing trading, you might be susceptible to hackers.

• Stress: Swing trading might be very stressful.

Conclusion

Even though the fact that quick profits can be made using swing trading is very appealing, taking caution when using this method is necessary. Beginner trader should first start acquiring knowledge and experience before diving into swing trading. Plus, assessing your risk tolerance is mandatory before starting this stressful type of trading.

If you have the knowledge, experience and risk tolerance to try swing trading, these are few tips to consider:

• Start small

• Give yourself the appropriate time required for the trading

• Don't take big risks

• Take additional measures to secure your wallets and login information

• Do Your Own Research

Disclaimer

I am not a financial advisor. The information found here are for educational purposes and cite my personal opinion and it should be considered as such.

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