First of all, we need to know the difference between swing trading and trend trading.
Swing trading and trend trading are just different levels of your trading. A long-term trend contains large and small swings, and whether you trade swings or long-term is mainly determined by how much retracement you can bear.
If the retracement you can afford is small, then you can only catch the short term. If the retracement you can afford is large, then you can catch the long-term trend.
Furthermore, both swing trading and trend trading can generate stable profits in the long term, it’s just that your trading level is different and the market conditions you are trading in are different.
So how to choose?
If you have less capital, you should do swing trading. Swing refers to the trading level between short-term and long-term. Trend trading tracks the big trend and gets the big market. For example, overseas returnees trade in the big trend and the big market. It is not suitable for you with small capital.
Swing trading is to divide a large market into several segments. For those with less capital, I recommend swing trading because it allows you to see profits in a short period of time. It is very helpful for your trading confidence.
However, if you use a small amount of capital to trade large-scale trends, you may only trade a few times a year, and it will be difficult to improve your trading level.
If you want to make a profit in swing trading, you still need to follow the correct trading logic, that is, you must have the logic of trial and error, cut losses, and let profits run.
If you want to trade a small cycle, you can open the K-line chart of this cycle, and then see what kind of market you want to catch. Do you want to catch a larger market, or do you want to divide a wave of market into several times? This is up to you to decide.
If you want to capture a larger market trend, then even if you are using a small cycle, you still have to use large parameters to bear a larger retracement, so that you can have a chance to capture a larger market trend.
If you want to capture in several times, then you should set the exit rules according to your actual situation. In other words, your exit rules determine the size of your trading level. If you exit when you earn 10 points, then you can only get 10 points of market conditions. You start to protect profits when you earn 100 points. You start to bear a certain profit retracement and let the profits run. Then you can capture a larger level of market conditions. So you need to ask yourself what kind of market you want to do. As long as your trading logic is correct and in line with the stage loss, you can let the profits run.
Of course, based on my many years of trading experience, I think the big cycle band is relatively stable. You want to catch the small cycle band, which is essentially due to your greed. The small cycle has more false signals, more noise, and more handling fees, so it is difficult for you to make a profit. Maybe the band you have worked hard to catch is not enough to cover your error cost. The small cycle band may be just a small consolidation in the big cycle, so it is recommended to trade the big cycle fluctuations.
