Table of Contents
Let’s imagine , A group of friends went on a boat ride in Goa to chill for a weekend after a heavy stressful work week at work.What could happen if their boat broke and drowned into the sea because of high tides in the sea .
And they realize they are not wearing life saver jackets . Now if they know how to swim properly in the right direction then they will save themself otherwise they will die drowning .
In a similar manner , the stock market is a place of huge risks. If you don’t have proper knowledge , mindset and practical experience, you might lose all your hard earned money . So it is very important to learn first before making money in the stock market .
Even though there are many ways to learn swing trading , people like you are still confused on how to learn swing trading the proper and right way .
Being a profitable swing trader for more than years , I have already guided many of my friends on how to learn swing trading and make them achieve 30% return per year consistently from swing trading .
So I have written this article for those people who want to master swing trading and achieve your desired returns on stock market trading .
What is swing trading in india?
Swing trading is a type of trading technique used to capture short term movements in the stock market . Any trade you hold more than a day comes under swing trading .
In cash market, swing trading can be done by buying any stocks and sell it after a few weeks. If you want to do short sell i.e (sell now and buy later) , then use options and futures to do it.
It is suitable for people who want to make money doing stock trading part time because swing trading requires minimal screen time compared to intraday trading.
Before explaining the four ways of learning swing trading the right way I want to make sure you understand why swing trading is better than intraday trading .
why swing trading is best ?
Not everybody needs to become full time traders in the stock market to make money consistently . You can still continue your job and make money in stock market by doing swing trading part time .
Even if you want to become a full time trader , first learn swing trading and become profitable in it . Then switch to intraday trading , because trading is the most uncertain career .
1.Do swing trading part time
“Full time traders do intraday trading , part time traders do swing trading”
In swing trading , you are going to capture the story term trends of the market which lasts only a few weeks . So you need only a few hours in a day to analyze the charts and get prepared for the execution of the trades.
Whereas Day traders have to spend many hours executing their trades in the live market within a day to maximize their gain .
2.Stress level in swing trading
In swing trading we use higher time frames like one hour to one day timeframe to take entry and exits of our trades . So, there will not be a lot of noise signals like fake outs whereas in a smaller time frame such as 1 min time frame to 5 min time frame , there will be a lot of noise . These noises will give us a lot of false signals and make us more stressful in our trading career .
Also swing trading , accuracy of winning the trade is higher than the intraday trading because we use higher time frames in swing trading
3.Time required to learn swing trading
Doing intraday is like performing an open heart surgery , where a high level of expertise is needed to perform it very successfully . Whereas doing swing trading doesn’t need that kind of expertise and knowledge .
In swing trading , we will get a lot of time for analysis and make decisions for execution of trades since it is done on a higher timeframe . So it requires less time to learn it than intraday trading .
So now you understand why swing trading is best compared to all other trading techniques . Now We are going to look at four ways on how to learn swing trading the right way without wasting our time , energy and money .
Four efficient ways on how to learn swing trading :
1. What is zerodha varsity ?
Zerodha varsity is the learning platform for newbie stock traders to learn all the basics of stock market ,concepts of technical analysis and fundamental analysis . Not only that it is a free and very reliable source to start your learning journey in stock trading.
Zerodha varsity also conducts a series of tests for you to analyze your knowledge gained and provides a certificate each time you finish a module . Zerodha varsity education content is written by Karthik Rangappa who is a senior equity research professional in zerodha.
2. Best Stock market books in India
Once you covered the basics of stock market and concepts of technical and fundamental analysis , now you have large collections of books available to upgrade your knowledge on swing trading in the stock market .
If you are a complete newbie , I would suggest you read the following best stock trading books:
Rich dad Poor dad by Robert T Kiyoski
The intelligent investor by Benjamin Franklin
and trading in the zone by Mark Douglas .
Also you can explore good swing trading books on the internet and read those books to gain extensive knowledge in it . Why I suggest you read books is that it is a very reliable and very affordable way to learn swing trading.
3. Learn from youtube channel for stock market
Next comes the social media platforms like YouTube , instagram and twitter . There will be a lot of successful traders who give free knowledge and share their strategy as well as their experience in the stock market .
It is very important to follow and learn only from real genuine traders on YouTube . Because there are a lot of scamsters also available on YouTube to cheat you and provide you false knowledge about the stock market .
Now comes the next question , how to find the best YouTube channels to learn swing trading. I will give you a few criteria to look for before starting to learn from any YouTube channels .
- First you should make sure he is a real trader and regularly makes money in the stock market . How you can find this is through his profit and loss statements .
- No genuine traders will give you calls to trade in the stock market , so avoid people who want you to pay them for the calls they give on entry and exit. Because nobody can predict the stock market and it is the game of probabilities .
- Third criteria is to use your common sense whether the youtube channel you are following is helping you to upgrade yourself in the world of swing trading.
Once you start looking for the criteria above , you will get the genuine stock trader to learn from in the youtube channels.
4.Best stock market course in India
Now you have gained a lot of knowledge from above resources , but still if you are not profitable making money in swing trading . Because you don’t have a high probability swing trading strategies and solid psychology in Trading
Reason why you should join a paid mentorship training program is to learn the high probability swing trading strategies and mindset to gain from the mentor .
Things to look for before joining paid mentorship programme
1. Ask the trader to share his P&L statement to check whether he is profitable or not in swing trading. Because many of the people who sell courses are not profitable only . How can a guy who doesn’t know trading can teach you trading?
2. Make sure he makes money through the strategy which he is going to teach you in the program .Also the strategy should be very simple enough to learn otherwise it is tough to master the strategy.
3. You should not join a per recorded course where only he is giving you videos to watch and no support is given . Because you can’t understand his strategy through videos only . You will get a lot of doubts while executing in the live market . So join a mentorship programme where you get a chance to interact with him and clear your doubts .
Conclusion:
By now you should have learnt the swing trading from all the ways which I have shared with you .But still there is a last step pending before you do swing trading with your hard earned money . Yes , you should do paper trading minimum 3 months before you go for live trading .
Reason why paper trading is a must , because only then you will understand the different market cycles of the stock market like during a disaster and during a major economic event. Also it will help you to understand when to trade and when not to do swing trading .
You can win once by luck but to win consistently in the stock market , you need discipline to follow the rules and go through the journey of stock trading .
Once you have followed all these and become successful in swing trading ,then no can stop you from achieving financial freedom and living the dream life .
Frequently asked questions:
1.How to select stocks for swing trading in India ?
There are majorly two ways followed to select stocks for swing trading are as follows:
- First is to manually scan the 200 stocks one by one to look for entry . For good liquidity, you can create watchlist futures and options stocks.
- Second is to shortlist the stocks using the ready made screeners available in the market
To learn more , check out my latest blogs:
Why You’ll Never Succeed at How to Earn From Intraday Trading