Your question is genuine and your points are all valid. Your understanding about swing trading is absolutely correct. Let me answer some of your points -
Yes, I did. Generated returns as well. But, two things kept me from doing that on regular basis. One is overnight risk which I was not able to manage in my early months of trading because my stop loss management was poor. Other one is lack of capital. Intraday became more attractive as margin availability was good at that time.
The reason I am not able to do swing trading now is still the same, other than managing SL as I can do that now. But, another big reason of avoiding swing trades now is that you canāt take bullish trades overnight when the market is not in a bullish trend anymore. I know that everything is not negative, but after 2 years of bull market the risk of a flash crash or gap downs is really high. Gap downs also result in order slippages.
For sure, there is no doubt at all. But, one has to understand that swing trading is particularly hard during bear markets. You are in a high risk of gap downs, news based issues, results, corporate announcements and lot more. I am still doing wing trading, but on paper for now. I am trying to follow big money to make it more reliable and less prone to breakdowns.
See, the best part of intraday trading is āMarginā and āNo overnight risksā. On the other hand, swing trading will give you ample amount of time to analyse a trade, take an entry and wait for it to pan out, easily move the stop losses and manage everything. Yet, you have to keep an eye on news, announcements, sector trend, market trend etc.
My point was from the returns angle. If the same expected return can be achieved, over the long run, then swing trading I think is better, because I feel if such an effort is put in delivery trades, the results will be better.
Also, we can use screeners to find the stocks that are in momentum, even if the broader indices are trending down. As there will be stocks that go up despite market going down.
Of course, the effect of broader indices will be there on these stocks too, so the waiting period for the trades to be profitable will be more. And yes, news pertaining to that company or to the sector will influence the trade.
I personally find intraday nerve racking, so much happening in few seconds, so I find swing trading better. Some may find intraday better with margin, stop loss, no delivery, long and short etc, and they are ready on their toes, act quick.
I think given the Intraday margins and picking the right stocks working on watchlist before hand can help out find stocks with potential moves large enough give good returns. i started working on my watchlists early on and could really see the differences in the returns and stuff
Backtest all you can to irradiate any doubt that lingers in your mind. Take time to understand the factors involved in reducing your chances for earning profit and work on making it better. Sometimes, even if you have a profitable strategy, because of the constant changes in the market, you may not achieve profit. Be prepared, either way. Eventually, through experience, you will learn.
I can see at what stage you are in and your trading style is 99% youtube learned and i was facing the same problem last year. It feels like I have done everything but somehow itās too hard or impossible to make money from equity trading . i will tell you clear facts which i have faced , youtube learning is good for investing but not for intraday because intraday is a very skillful game , itās like a circuit board you may know everything but how you use it or arrange it, little little changes make all the difference and those things only a pro can tell you . So to make a circuit board work you need to have all the connecting dots and also you should know how to use it so that current will pass and work for you.
