As the great investor Warren Buffett has said. The key to wealth creation is not to lose money. For swing traders, it is to manage risk in return for the potential for making greater profits.
Day traders will rely almost exclusively on technical indicators and have little concern with the fundamental factors driving price over longer time-frames.
The Key Advantages of Swing Trading
If you are working a full or even part-time job, then it’s likely that swing trading could be a good fit for what limited time you have.
Margin trading allows the trader to borrow funds from their broker (in return for paying interest). Thus, trading on margin means the trader can commit less capital to any one trade idea.
Trading in this way also allows you to pay attention to the economic and political news events that may be about to impact the price of stocks, currencies, or commodities.
No matter how much technical knowledge you acquire, you will not succeed at trading unless you can manage your emotions.
As a swing trader, you need to have the patience to wait.