Swing trading became popular in the 1990s as the huge equities bubble formed, allowing massive profits to be made from one of the most strongly trending markets in modern history. Traders simply bought the strongest stocks or indices every time they pulled back a bit, and rode the subsequent surge to new highs. It was a heady time.
When the markets are in the right kind of mood, swing trading is the most enjoyable way to harvest money from the pits. But the markets aren't always in a giving mood - swing trading is only a profitable tactic when your trading vehicle is moving strongly up or down. Attempting to catch big moves (which is the main goal of swing trading) during a shifting or range bound market is a painful way to whittle down the size of your trading account.
When the markets are in the right kind of mood, swing trading is the most enjoyable way to harvest money from the pits. But the markets aren't always in a giving mood - swing trading is only a profitable tactic when your trading vehicle is moving strongly up or down. Attempting to catch big moves (which is the main goal of swing trading) during a shifting or range bound market is a painful way to whittle down the size of your trading account.
