The cold hard truth about swing trading is; you wont get rich quick. Sorry to break the news to you but its just not going to happen and unrealistic expectations are one of the biggest killers of traders.
Traders who have been successfully swing trading have come to this realization that trading is a long term approach. Any one trade is not going to make you rich but is just one of many profitable trades. Each profitable trade leads to a profitable week, month and year.
I cannot stress enough that having unrealistic profit expectations of a small account and trading it full time leads to more blown up accounts than any other factor. This is one of the main reasons that swing trading services get bad reviews and reputations.
People think because they pay money every month to a service, they expect that person is going to make them rich.
Admittedly some stock picking services play on this and show pictures of people living a luxurious lifestyle. While that can happen, its not going to happen overnight.
It dangerous to your financial health to take the get rich quick approach to swing trading. What is wrong with dreaming you ask?
Trading is not like winning the lottery, the problem is you will not have the proper perspective and take a long term approach.
You will be always looking for the “big” trade that will make a killing while risking entirely too much of your account on one trade.
You will then make bad decisions and not listen to the market. If the market is telling you to get out the trade because its not working, you won’t listen and stay with the trade, hoping it will work out.
Going For the Home Run
I cant stress enough to have realistic expectations. Its highly unlikely that any one trade is going to change your life. You need to stick with trading strategies that have stood the test of time.
You will end up getting rich with swing trading if you stick with it! Just know that it will take time by using a strategy and following a PLAN.
When you are starting out, making money should really not even be your goal. It should be to just practice following a plan and staying disciplined.
You will be very surprised on how hard this is to do!
Once you prove to yourself, you can be a disciplined swing trader you will gain more confidence and not try and hit the “homerun” because you realize the money will come.
There Are Many Ways To Make Money
It is said there are as many ways to make money in the stock market as there are people. This is true as long as you find a strategy that works for YOU! If you are a day trader at heart then trying to use a longer term strategy, you will fail.
The opposite is true of course.
Its vital you do so as well.
I would highly encourage you when starting out use a swing trading service like Jason Bond Picks or Microcap Millionaires. Using a professional service at first will get you started on the right path and show you a profitable strategy and how to follow a plan.
If Penny Stocks are your thing, then you should definitely check out Microcap Millionaires.
You can read all my reviews on stock picking services here:
If you are looking to open a brokerage account or looking for a better one, I wrote some reviews of brokers I have used and currently using.
OptionsHouse Review (Currently Using)
Scottrade Review (Used when I first started)
If you have any questions feel free to contact me.
– Robert Walsh