I tried day trading once. I tried to fit it in between working 60 hours a week, continuous meetings and phone calls, coaching, volunteering for school, etc. Let’s just say it didn’t work out. I was too distracted, and didn’t know what I was doing. I lost a lost of money very quickly.
I almost gave up on the stock market for good. I decided to look more into swing trading. Holding positions that are based on valuation and take a little longer to develop. It was the best decision I ever made. I absolutely loved it. I hated the volatility of day trading. It seemed shallow to me and it didn’t fit my personality. But swing trading fit me to a tee, and here’s why:
1. It takes a decent amount of work to find good trades. You have to learn technical and fundamental analysis, and be able to scan through stocks to find the requirement you like. Then you need the patience to hold them until your trade plan comes to fruition. I liked this so much more because the research I put in gave me a sense of accomplishment that I never felt before.
2. You don’t have to quit your day job. Swing trade stocks typically move slower and take a little longer, so you don’t have to be glued to the computer. Set auto stops and profit triggers and let the trade come to you. I check my swing trades 2 times a day on my iPhone just to make sure things are going well. This provides and amazing supplemental income for me and my family to take extra vacations and have nicer stuff (and maybe retire a little sooner.)
3. You can sign up for a watchlist service relatively cheap, and get great ideas from a professional. They are usually a little higher quality than day trading watchlists. Don’t ever take a watchlist as gospel though. Use them for ideas, but do your own research. I enjoyed doing the backup research because I liked to feel 100% confident that I knew exactly what I was trading and why.
4. There are a lot of good and bad teachers out there. It takes a little time and research to find the right mentor, but when you do, they can really take your trading to the next level. Do your research and when you’re ready, invest in yourself.