Can I make a living trading stocks? – Swing Trading For Beginners


The answer to this question is most likely “yes”. One problem with this approach, I think is that the idea that trading stocks is easy would probably not be true. There are a couple of areas that are very good at making money with trading:

Risk takers

If you are in the business of predicting how much a stock will do, you will make a lot of money trading stocks. This is due to multiple factors:

You can trade to an accurate price, which is often very rare. Your risk is very low, and the returns you can earn are good.

There is a very high degree of correlation between the two, so if your share price jumps 10%, and you are 100% sure of your price predictions, your price in the long run generally follows suit.

You are able to predict how much the market is likely to decline, and you’re able to predict the direction of that decline. With that in mind, you will make a lot more money than a random trader, who has a much smaller margin of error.
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On the flip side, a random trader can make a lot of money as long as they understand the relative market value. For example, let’s say that I’m running a stock portfolio, and I decided to make all of my money by turning a profit by buying stocks. The market was a bit overvalued, and a lot of people were making really good money with it. It was in fact worth a lot of money, but I was going to try and make this one more. I was going to make a lot of money by buying one share at 12.5, and selling them at 14.5 if they continued making such great money.

So why isn’t that something you should be doing?

The reason this isn’t usually something you would recommend trading as a daily trader is that the market is so complex that you cannot consistently make the same percentage return on the same amount of stocks over time. There are many reasons this is so, but the big one is most stocks are highly correlated over time, so a lot of factors can lead to big swings in the market. And then there’s the fact that you don’t really know what your actual target is going to be because the market can rapidly go from a good performer to a loser.

In the example discussed above, if I put my money in shares of Apple at $90 when the stock was worth $98, and sold them off for a loss

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