Day trades, swing trades, and position trades are all ways to time the market. It’s different from a traditional buy and hold strategy because positions are generally only held for a short to intermediate term period. Swing traders typically look for patterns in the market and try to take advantage of any trends. Stocks can also be held this way during periods of correction with the expectation that they will eventually go up in the future.
I plan to hold most of my investments until retirement but once in awhile I also like to have some fun with my money and speculate by swing trading. Because of the risky nature of timing the markets I never have more than 10% of my entire portfolio in these kinds of trades. The purpose of my swing trades is to buy stocks when they’re low, and sell them when they’re high to make a profit. I blog about my experiences usually right after I make a trade so that anyone who follows my blog can see exactly what stocks I buy, when I buy them, and when I sell them. This keeps me accountable since my trades are always in the present, so I can’t make up numbers from the past. I make my trades public for educational purposes only so others may see my decision making process. Obviously there is nothing stopping anyone who reads this blog to mirror my trades but I’m not here to recommend advice and can’t be held responsible for other people’s financial outcomes 😛 Everyone should do their own research before swing trading.
Swing Trade Round 1 (2011)
Swing Trade Round 2 (2012)
Swing Trade Round 3 (2012)
Swing Trade Round 4 (2012)
Swing Trade Round 5 (2012)
Swing Trade Round 6 (2013)
Swing Trade Round 7 (2013)
Swing Trade Round 8 (2014)
Overall Performance For Completed Swing Trades:
- Average Principle Invested: $1980
- Average profit/loss: $360 profit
- Average return on each trade: 18%
In my first swing trading experience even though I didn’t have any savings I still managed to swing trade by borrowing $5000 from the bank. Luckily that trade went well. But using leverage can also backfire like in the case with my third swing trade attempt. There have definitely been some costly mistakes in my short history of speculating, but overall I’m pretty happy with my results so far.