#SwingTradingStrategy

Cons of swing trading It takes time to master technical analysis

Swing trading requires you to read and interpret real-time price charts. Mastering technical analysis is not an overnight process. As a retail trader, identifying entry and exit points for a swing trade does not come as naturally as it does to professional traders with years of experience in the markets. Swing traders are always at risk of ‘gapping’

Some swing traders will look to take long-term positions over several days or weeks. This could cause you to experience gapping – when the market reopens the following day away from the closing price of the previous day. This occurs when an asset’s fundamentals change suddenly while the market’s closed. Leverage can magnify losing positions

Most swing traders will opt to trade with leverage to maximise their open position in the markets. By holding positions for longer than a day trader that scalps the market, swing traders put themselves at risk of larger losses, especially if adequate risk management techniques like stop-loss orders aren’t deployed.