What Is Considered A Good Swing Trading Return?
A good swing trader will make 50% - 100% on their portfolio a year. Imagine, buying and selling the market, stocks, currencies or commodities on every major move up and down. The possible percentage gains are huge. A swing trader does not have to watch the markets every day. Instead, find a level where a stock, commodity or currency looks attractive, buy it and set a limit sell order at your target. This can be done on the short side as well. Then, just rinse and repeat hundreds of times a year.
Example: The chart below is of Cisco Systems, Inc. (NASDAQ:CSCO). The average investor who was long on Cisco from the start of this chart in April 2010 and held it for one year is down 38%. Even if you held this position on the short side, you are only up 38%. However, what if you were a swing trader and moved in and out of this stock seven times over the course of the year. How much did you make? A staggering 144.5%.
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