How To Start Swing Trading As a Part-Time Job

BY TIO Staff

|December 8, 2022

Have you been thinking about trading as a part-time job? If so, swing trading could be the right trading style for you. It’s an active yet hands-off style of trading that is relatively easy to learn and requires minimal time commitment. Here’s what you need to know to start swing trading.

Swing trading can be a rewarding part-time job ‒ after all, what’s better than getting paid while you side-hustle? And, it isn’t as daunting as it may seem; all you need is self-discipline, dedication, and a solid strategy.

You will need to research the basics of swing trading and practice with a demo account before investing real money. Set realistic goals for yourself and stick to them ‒ remember, slow and steady wins the race! Swing trading won’t make you overnight riches (sorry!), but it does have the potential to help boost your income.

What is Swing Trading Part Time?

Swing trading is a great style of trading for those looking to engage in part-time trading.

Swing trading is an investment strategy that takes advantage of short-term price movements. It involves taking positions in stocks or other securities with the intent of holding them for one day or up to several weeks. The goal is to make a profit from the fluctuation in price over the course of your trade.

Swing traders will usually set entry and exit points based on technical analysis, including chart patterns and indicators such as moving averages and Bollinger Bands. They may also consider news events and macroeconomic indicators when making decisions about when to buy or sell.

While some swing traders prefer manual methods, most traders take advantage of automated software programs, trading signals, that monitor the markets 24/7 and alert them when certain conditions have been met. This allows them to take advantage of opportunities quickly and efficiently without having to constantly monitor the markets themselves.

Swing trading also allows for more flexibility around when to trade due to the longer time frame involved in each individual trade decision.

Swing Trading Vs Other Styles of Trading

Compared to other styles of trading ‒ such as day trading where trades are made and closed out within the same day ‒ swing trading relies upon identifying and taking advantage of price fluctuations that occur over a period of several days or weeks.

5 Advantages of Swing Trading as a Part-Time Job

Swing trading as a part-time job is an enticing opportunity to many. There are several advantages that come with swing trading as a part-time job, such as being able to set one’s own hours, having the flexibility to work whenever and wherever it is convenient, and having the potential to generate additional income. For those who have busy day jobs, swing trading on the side can be especially beneficial. Here are a few more advantages to swing trading part-time.

  1. Swing trading can be more profitable ‒ depending on how large an investment you make.
  2. As a swing trader you may experience less stress ‒ since you are holding trades for just a few days, and you’re not glued to your computer.
  3. It can be done part time ‒ since the Forex market is open 24 hours a day, 5 days per week.
  4. Swing trades have larger profit targets ‒ compared to scalping or day trading, swing traders aim for larger profit potential on their trades.
  5. It can potentially help minimize risk ‒ since you won’t necessarily be trading as frequently as you would with scalping or day trading.

Pitfalls of Part-Time Swing Trading

It’s important to note that swing trading does come with certain risks. As with any investment, there are no guarantees when it comes to swing trading and it’s possible for traders to lose money if their trades don’t go as planned. That said, by following good risk management practices, such as limiting your exposure and utilizing stop loss orders, you can minimize your risks while still maximizing your potential to profit.

A Strategy for How to Swing Trade Successfully

Swing trading is a popular method of trading for those looking to enter the financial markets as a side hustle and who don’t want to be over-consumed by trading charts, analyses, and research. To succeed in swing trading part-time you will need to:

  • Develop patience
  • Practice discipline and consistenty
  • Find a trading strategy that works for you

Develop a Swing Trader Mentality ‒ How To Think Like A Swing Trader

Having the right mentality is key to being a successful swing trader. To think like a successful swing trader, you must be able to spot and evaluate potential opportunities quickly.

Swing traders look for short-term trends to capitalize on these opportunities, and react decisively when the time is right. Whether swing trading part-time or more, a swing trader needs to understand their risk tolerance and stay disciplined: When it’s time to enter or exit a trade in order to maximize profits, they don’t hesitate.

Swing traders have the ability to see the market with sharp clarity and know how important it is not to get attached emotionally. To truly succeed as a swing trader, you have to have the right mindset – stay informed, take calculated risks and never lose sight of your long-term goals!

Daily Habits for Successful Swing Trading

  1. Prepare from the night before.
  2. Start by managing opening trades.
  3. Understand how markets are correlated.
  4. Use screeners and scanners to find trading ideas.
  5. Create a watchlist from your screen results.
  6. Plan your trades’ entry and exit points.
  7. Journal your thoughts and actions for the day to help you start thinking of new possibilities.

Tips to Finding Swing Trade Opportunities Part-Time

It’s not easy to find trades that will give you the best chance of success. Here are some tips to help you find the right trades for swing trading:

1. Look at the daily chart and see if you can spot a trend. Is there a clear pattern?

2. Check out the weekly chart as well—does it confirm what you’re seeing on the daily chart?

3. Consider the fundamentals, do they support the trend and is it sustainable—would it be more likely to continue or reverse?

4. Use those insights to decide whether this is a good trade for swing trading!

Start Swing Trading as a Part-Time Job

Fortunately, getting started with swing trading is relatively simple once you understand the basics. First, it’s important that you have access to reliable financial data so that you can analyze trends accurately and make decisions based on accurate information. Depending on what type of accounts you have access to, this may come in the form of online brokerage accounts or subscription services such as Bloomberg or Reuters.

You should also familiarize yourself with different charting techniques so that you can identify potential entry and exit points quickly and easily. Finally, practice makes perfect—it’s important that you test out your strategies using paper trades before putting real money into play so that you can get a feel for how your strategy works before risking any capital.

Do Your Homework

Before you start trading, it’s important to do your homework first. Swing trading can be a great way to make money, but it’s not as simple as buying low and selling high. You need to have a deep understanding of the markets and various strategies before diving in. Take some time to research the fundamentals of swing trading and familiarize yourself with different indicators, analysis techniques, and risk management strategies. This will help ensure that you are making informed decisions when you start trading.

Start Small

When starting out with swing trading, it’s best to start small ‒ especially if this is your first time trading the markets. Start small until your confidence, knowledge and experience grows over time. Don’t get too ambitious right away; take things slow until you understand how everything works so you can develop your own strategy.

There are many benefits to becoming a swing trader; you have more control over your investments than you would with traditional buy-and-hold strategies. You also enjoy greater flexibility since swings occur over short periods of time. This means you don’t have to spend all day glued to your computer screen waiting for an opportunity to arise!

To get started with any of this, you first need to open a trading account with a top rated broker.

Are you ready? Let’s start!

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TIO Staff

Behind every blog post lies the combined experience of the people working at TIOmarkets. We are a team of dedicated industry professionals and financial markets enthusiasts committed to providing you with trading education and financial markets commentary. Our goal is to help empower you with the knowledge you need to trade in the markets effectively.

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