Return of Swing Trading Vs Investing?

Most of the financial advisors, YouTube videos and books mentions that if we could generate 20% CAGR return consistently from investing, its a good return.

Then shouldn’t we opt positional trading where in a period of 6 month, 20% return can be generated so in a year, 40% CAGR return which is double than value investment. Also here, we dont have to hold the cash for years to see the growth.

So can we say value investment is old school thing now? Please share your insight what i am missing.
Thanks in advance

Just a thought, How many people do you think have the patience to invest and pick good companies to give consistent return of 20%+ in all types of market and hold for number of years?

20% Gains you see in the bull market is not the same when its a bear market.

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I am not trying to be condescending at all, but you sound like a new investor who started mid-2020. There will also be years where it would be a good achievement to simply not lose money. 40% is not the norm, even for successful positional traders.


Thats true that i am new investor therefore i want the answers insights from the people are in this market from years.
I have alwayssss learned about value investing, buy and hold thing… but my financial advisor suggests me for positional trading and assured for 20% return in 6month.

So just want to know does it sound realistic and what actually works in the market?
Hope to hear :slight_smile:

If some one can hold for years, is it worth it then?

And the question in the bigger picture is, where is the wealth generated? Investing or trading? Where is more return?
Please share your insight.
Hope to hear:)

I think your question is about the time frame of average holding of your position. From my experience, it doesn’t matter and it depends on the person’s personal preference. One can loose money in any time frame and one can make money in any time frame.

It is usally other factors like risk management, position sizing, strategy etc which would end up influencing your return. I feel, choice of time frame of your holding should be chosen entirely on your temperament.

There is no one answer fits for all solution for these type of question.

I am a positional trader and LT investor who has consistently beaten the index, and I simply cannot “assure” anyone 20% return over such short term. Infact anyone who “assures” such over short term should not be trusted. I am not saying it cant and It can still happen ofcourse, but my point is that such “assurance” at the outset is not worth anything really…

If you are risk-averse(not zero risk), and want a somewhat peaceful hands-off experience, invest in the index or invest and track based on top 10 nifty constituents.

For a newbie, It is better to foray as a pessmist or a cautious person, because the early-enthusiast often gets mauled. And frankly it is probably better to lose small early on. Might sound weird, but its true for most, because actual learning begins with losing.


@Vij : What is your CAGR over the last five years?

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[quote=“jashjacob, post:2, topic:107368”]
Just a thought, How many people do you think have the patience to invest and pick good companies to give consistent return of 20%+ in all types of market and hold for number of years?

You can get close to 20% by investing in some decent mutual funds, so it doesn’t require much effort from your part.

I don’t think anyone makes money in a bear market (I am talking about cash only,also not intraday). You can either avoid trading in a bear market and wait for recovery, or buy some bargains, which will do well when the market enters the bull market. So either way money is made in a bull market.

If you are swing trading, then the returns have to be quite high to justify your efforts. Other wise as I said just put in some MF and forget about it.

I share similar thoughts to yours about swing trading, and looking for others opinion.

I think the 40% returns works only with limited capital.beyond a point you wont get the 40% returns.

If everyone stopped buying in a bear market, when will it start moving up?

Money can be made in bull or bear market with cash. If you can follow where the money is moving.

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yes… if no buys then, it will forever be a bear market.

Investing and trading both are different game altogether. For trading you need to learn by putting hardwork as 95% loose money in trading and in investing you can buy a good fundamental stock and forgot .

Don’t depend on anyone, learn to analyze on your own and then do investing. There is nothing like guarantee of consistent return where six months. You have to learn trading to get such returns.