What is swing trading
नमस्कार मित्रो। एंजेल वन के इस podcast में आपका स्वागत है ।
Angel broking ke podcast mein humne kafi bar stock market ki versatility ka jikr Kiya hai. The stock market truly has something for everyone. Aapka time frame short ho ya long Ho, bhale aapka risk appetite low ho ya high Ho - aapko stock market mein aapke personality or goals ke anusar koi Na koi instrument aur koi Na koi investment style mil hi jayega.
Agar aapko intraday trading bahut jyada short-term aur unstable lagti hai, aur value investing kuchh jyada hi slow lagti hai to Shayad aapko swing trading ideal lage. Swing trading can be said to be combining the best of both the worlds. Before we see how it does that, let's look at intraday trading and value investing in brief.
Intraday traders look to profit from extremely short term price fluctuations. In fact any fluctuation beyond 24 hours has very little meaning for them. Intraday traders clear their positions every single day - that is they do not maintain or hold a position for more than 24 hours. Intraday traders like the fact that they can cash out every single day and cap their profits and losses. They like beginning afresh everyday.
Value traders on the other hand believe in playing the long game. Value traders Apne approach mein traditionalist hote Hain. Ve stock market ko girte aur chadhte prices ka circus nahin mante. They believe that the stock market is simply a platform to invest in companies with bright long term futures and then stick to your investment choices. A lot of industry expectations and even unverified stories can affect stock prices in the short term. But the long-term price is only affected by the core strength or weakness of the business. They find engaging with these core factors more rewarding than chasing short term profitable margins.
Now let's understand how swing trading borrows a little from both intraday trading and value investing. Like intraday trading, swing traders also aim to capture profits that open up due to price volatility. However, unlike intraday traders, swing traders do not mind holding onto their positions for the short-term. For the ideal trade, the buying price and the selling price has to be just right. And sometimes the stars might not align on the same day. They might take a week or even a month to align properly. Swing traders are prepared to stay invested in the short term in order to take advantage of the swinging prices.
Therefore one can say that to be a swing trader you need less commitment than a value investor, but more commitment than an intraday trader.
Swing trading is extremely rule-based. Swing trading mein gut feeling aur aur apne khud ke usoolon ki jyada jagah nahin Hoti. The right time to enter and exit a trade only becomes clear after crunching a lot of data. For example the typical swing trader looks at 3 moving averages before deciding his outlook on a trade. He picks these moving averages from the closing prices in recent history. Each of these moving averages represents a different aspect of the stock in question. Taken together, they are meant to provide a comprehensive overview of the short-term movements of the said stock. Agar teenon moving averages upar ki taraf point Kar rahe hai, toh swing trader ka outlook bullish hoga. Aur agar teenon moving averages neeche ki tarah point Kar rahe hain, toh swing trader ka Outlook bearish hoga. Depending on his Outlook, the swing trader will determine his strategy.
There is a saying in the stock market: do not fight the tape. The tape in this saying represents the actual tape which captured the market trends on the trading floors in the past. Iss kahavat ka matlab hai ki market trend ke opposite direction mein bet karna risky move hai. However a swing trader can fight the tape. Let me explain.
Market main koi bhi stock ke short term movements uske long term trend se bahut alag ho sakte hain. This is because the long term Trend and short term fluctuations are affected by very different factors. Therefore a swing trader can ride a short term stock movement to earn a profit. Yah baat matter nahin Karti ki yah short term movement aage jakar reverse ho sakta hai. As long as the swing trader has profitably cleared his position, the long term trend will not affect his holdings at all.
Jo log kafi salon se financial markets ke sath deal kar rahe hain unka manana hai hi ki market ke teen main movements hote Hain. Iss mein se pahla movement hai main movement - this is the long term trend of the stock. Doosra movement hai medium swing, which lasts from 10 days to 3 months. Prices that rise and fall in the span of a few hours to a few weeks are called short swings. It is possible for a stock to have a bullish main movement and a bearish short swing. The swing investor will only be concerned with the latter.
Ek achcha swing trader banane main aapke paas following qualities honi chahie:
Firstly you must believe in objective data over personal values. Secondly aapko samajhna hoga ki swing trading casual income ka source nahin hai. Aapko bahut rigorously market movements track karne honge. Finally you must be willing to trade in stocks from different sectors and stocks that belong to companies with varied market capitalisations. For a swing trader it is not about which stocks or sectors your personally interested in - it is about what direction the numbers are pointing in.
चलिए, एंजेल वन की तरफ से आपको आज के अलविदा. ये podcast शेयर करना ना भूलियेगा - याद रखियेगा की ज्ञान बाटने से बढ़ता है । और फिर अंत में तोह financial markets एक ऐसी university है जिसमे कोई professor नहीं, सब students ही है ।
Intraday and Swing trading
What is swing trading