subject: Swing Trading - Can I Swing Trade For A Living? [print this page] Learning to trade is obviously a great step in the right direction. It allows for the person to get the feel of how everything works, and lessens the chance that they will lose a lot of money quickly, although we know that there's will be some sort of loss. When it comes to Pre-trading, preparation will grant only a small amount of experience, because there's a degree of risk-avoidance in the process. In paper trading, a person will learn the ins and outs of swing trading, without having to put up any money. But, when a person does invest, they'll will have to come to one realization: they will draw down. There will be times where there is money lost, and that's the nature of the beast. Even the grizzled professional loses money with real trades, but they separate themselves from the pack by always learning from them.
Understand that there's many different facets when it comes to swing trading. Many of these aspects can be picked up pretty easily, but others take a little money. Trading isn't something that guarantees success, and there will be the need for the beginning trader to put themselves at risk as soon as possible. It may sound a little harsh, but the person has to jump right in if they want to succeed, learning lessons only that real losses can teach. The nature of risk is something that directly correlates to success or failure in the markets.
For the beginning swing trader, losing is something that will develop a pretty sound strategy. It is one of the best tools for any trader to have, and is just as valuable as all of the reading and paper trading. Although the goal is to earn money, the inevitability of losing is something that can be profited from at a strategic standpoint. The best swing traders keep this at heart, and it's more of a trial and error when just starting out, just like with pretty much every business venture. It's widely known that the only way to succeed is understanding the risk, and making appropriate changes to something that isn't particularly working for them.
In short, there's really no way to avoid the beginner's draw down. It's something that a person will encounter when they are first starting out. While a person may have become adept when it comes to paper training, they need to understand that this is pretty much a whole new ballgame. Learning swing trading organically will mean that a person will have to draw down, it's just one lesson that a person will have to pay for. Unfortunately, many people find that this is something that they cannot overcome, and turn their backs on trading all together. If a person survives long enough, they will definitely take that beast down, and start witnessing profits. But this would be the trick of trading, as many people find that after a couple of losses, they can't continue. But with enough practice, this will be a non issue.
by: Creztor Tessel
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