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TREND TRADING VS SWING TRADING

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Trend Trading Vs Swing Trading

Here we are discussing trend trading vs swing trading. Before we can definitively say that one is better than the other, let’s break down the differences – and also point out some similarities. Let’s commence by looking at trading frequency.

  1. Swing traders enter and exit positions faster than trend traders

 Swing traders aim to take advantage of short-term fluctuations in the general trend of a stock price. This means they can quickly get in and out of their station. Trend traders, on the other hand, lead the trend for months – patiently sitting on bearish spikes. As such, swing traders make far more trades over the course of a year than trend traders.

Trend followers trade less often because their positions bring higher profits. But make no mistake, the small profits a swing trader makes while a trend trader add up!

  1. Swing traders take larger positions than trend traders

 Swing traders take larger positions to compensate for the smaller profits they make from trading. Although you may only get 5-10% profit per trade, the large capital you invest makes it worth 5-10%. Trend traders, on the other hand, aim for higher profits. So, they can invest less capital and still achieve high profits.

  1. Entry and exit strategies also differ

 Another important difference between these two trading strategies is how to enter and exit a position. Trend followers are waiting for confirmation in the form of strong momentum indicators. Because they follow the broader general trend of the stock price, they don’t have to take as much risk and get in early. They may be waiting for a trend confirmation or a countertrend. Swing traders, on the other hand, seize the opportunity as soon as momentum and volume indicators show that the price is increasing. Timing is much more important for swing traders because they are only riding a short-term swing.

In Closing Positions Trend watchers wait months for the trend to reverse and begin to show signs of a price correction. They usually stop at a price point that they believe indicates a trend reversal. Swing traders, on the other hand, exit their positions as quickly as a few days after entry – or a few weeks at most. Because price action can be a bit more volatile on these shorter swings, most swing traders exit their positions using take-profit or stop-loss orders.

 Final thought

No matter what business style you ultimately decide on, one thing is for sure: you need the right tools in your arsenal to succeed. A reliable stock forecasting tool gives you access to information that allows you to trade with confidence.

Open Demat account with Gill Broking for trading.

For more knowledge about trading, keep track on our website – Gill Broking 

 

 

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Table of Contents

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

Names and contact details of all Key Managerial Personnel including Compliance Officer

Sr. No.Name of the IndividualDesignationContact NumbersEmail Id
1 Charanpreet GillCEO/MD011-40345555admin@gillbroking.com
2 Charanpreet GillWhole Time Director011-40345555gillbroking@gmail.com
3 Charanpreet GillCompliance officer011-40345555compliance@gillbroking.com
4Manpriya GillDesignated Director-1011-40345555manngill04@gmail.com
5Kewal GillDesignated Director-2011-40345555fvwealth@gmail.com

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