Is it difficult to make supplement income by swing trading stocks?
On One Hand: The Concept is SimpleThe idea behind swing trading is easy: Swing traders try to determine the short-term momentum of a stock’s price and catch it on the way up or down. The underlying value of the stock in unimportant to the trader, the only thing that matters is which way it’s going. Technical analysis, in which stock movements are empirically quantified, reduces this trick to a science.On the Other: The Execution is TrickyIt is enormously difficult to predict the trajectory of stocks, whether in the very short term, as with swing trading, or in the longer term. Technical analysis, which is a valuable predictive tool, is notoriously unreliable. Good swing traders must spend years getting good at their trade–and even then, they are often fooled.Bottom LineIt is very difficult to successfully supplement your income by swing trading stocks.
