Earn while you sleep
You might be familiar with the well-known quote by Warren Buffett: “If you don’t find a way to make money while you sleep, you will work until you die.”
I strongly believe in this principle, which is why swing trading has become my go-to strategy.
Swing trading is one of the simplest ways to earn while you sleep. Mastering this skill is essential, no matter your goals or daily routines.
While everyone else is busy preaching about day trading and its potential for making millions, there are a few of us who understand the true nature of trading.
Sure, there are those who excel at day trading. However, swing traders would argue that it’s simply not worth it.
Why waste your time on something so complicated, stressful, and where you’re likely to lose most of the time?
The difference
Swing trading is relatively straightforward and can lead to consistent profits with the right knowledge.
Day trading, on the other hand, requires strict discipline but often yields average results. With swing trading, success is more about strategy, which can bring anywhere from moderate to significant returns.
While I’m not against day trading, it has its advantages. Swing trading, however, offers simplicity and the potential for substantial gains.
You don’t have to work every day and be affected by the stress of day trading if you start exploring the potential of swing trading.
If you find yourself bored and with nothing else to do, you can opt for day trading. Day trading is for individuals who want to be actively involved in the markets every day.
However, day trading is not the best option if you’re seeking higher profits.
Let me explain what I mean…
How I achieved 500% returns?
And yes, it can be pretty cheap too! You can see how I bought stock options at 3.50, and they went above 23.50 the next working day.
I didn’t focus on the news that day, which was positive. Sometimes, the price reflects the news. So, I just saw the potential entry, and after careful analysis and calculations, I hit the buy button!
As it was quite cheap, I left it untouched over the weekend, unconcerned about time decay.
The next workday, I woke up to green numbers (profits) on my positions.
The profits kept increasing, and I stopped at 23.50 because a 500% return was sufficient for me, and it was well above my usual risk-reward ratio.
The profits were substantial, and I’m finished for the month.
The strategy I used remained the same: the simple market structure strategy I use for equity.
The trick in swing trading is to learn the strategy, understand the market, and start earning while you sleep.
Here, Reliance made a significant move after the news and is still above the breakout level.
If I had taken positions at the in-the-money (ITM) price, I would have held onto it until it reached the target.
However, since mine was deep out-of-the-money (OTM), I decided to exit once it reached the desired risk-reward ratio.
The potential returns of swing trading options or futures are not widely recognized. Many people believe that day trading is the only path to wealth.
In reality, day trading may require more capital as we are susceptible to greater losses due to emotions being in play every day.
Takeaway
So, in order to be profitable at day trading or swing trading, you need to follow the strategy, emotional and money management rules you have created for yourself.
It doesn’t mean swing trading doesn’t require following emotional management. It might be the toughest at times, as it might demand the utmost patience and conviction in your strategy.
And that can only be achieved by understanding the market and backtesting it.
For mentoring or consultation inquiries, you can reach me at ramyavofficial@gmail.com.
About Post Author
Resources & Links
Tradingview – Charting Platform
Zerodha – Trading brokerage platform (India)
Disclaimer
Trading involves substantial risk, and past performance is not indicative of future results. Always conduct your own research and consider seeking professional advice before making any investment decisions. The information provided on this platform about digital entrepreneurship is based on the author’s experiences and industry knowledge. It should not be considered as financial, legal, or business advice. Please consult with experts in these fields before making business decisions. This blog may contain affiliate links, and we may earn a commission if you make a purchase through these links. Your support is appreciated.
