Swing Position Sizing Calculator

Swing trading is a popular trading strategy that falls between day trading and long-term investing. In this article, we'll explore the fundamentals of swing trading and introduce you to our Position Sizing Calculator, designed specifically for swing traders!

What is Swing Trading?

Swing trading is a trading strategy that aims to capture price "swings" or movements within a specified time frame, typically ranging from a few days to several weeks. Swing traders analyse stocks, currencies, or commodities and aim to profit from short- to medium-term price fluctuations This style of trading is most suitable for traders with busy schedules.

Swing traders typically use technical analysis to identify trading opportunities. Technical analysis is the study of historical price charts and patterns to predict future price movements. Swing traders also use fundamental analysis to consider the underlying value of an asset before entering a trade.

Here’s an example of a swing trade:

Suppose you're a swing trader interested in trading in a company’s stock. You've done technical analysis and believe that the stock is about to break out (move up) on the upside.

You buy 100 shares of the company at ₹100 per share. You hold your position for a week, and the stock price rises to ₹120 per share. Then, you sell the shares for a profit of ₹20 per share!

What are the Benefits of Swing Trading?

Swing trading is popular for several reasons:

• Swing traders seek to profit from short- to medium-term price movements. Such trades could help you generate potentially quicker gains compared to long-term investments.


• Swing trading is less time-consuming and stressful than intraday trading, as you don't need to constantly monitor your positions. portfolio.


• Swing trading is less risky than day trading, as you're not exposed to the same level of volatility

What are the Key Characteristics of Swing Trading?

• Time Horizon: Swing traders hold positions for a few days to several weeks, making it a mid-term strategy.


• Technical Analysis: Swing traders often rely on technical analysis, using chart patterns, indicators, and other tools to make trading decisions.


• Volatility: This strategy thrives on market volatility, as it provides opportunities for price swings.


• Risk Management: Swing traders implement strict risk management techniques, including stop-loss orders, to limit potential losses.


• Profit Targets: They set profit targets to capture a portion of the price swing, aiming for a pre-determined return on investment.

What is a Swing Position Sizing Calculator?

Position sizing is an important aspect of swing trading, as it determines the number of shares to trade in a particular position based on your risk tolerance. marketfeed’s Swing Position Sizing Calculator is a valuable tool that helps swing traders make informed decisions regarding the size of their swing positions.

Here's a simple guide for navigating marketfeed’s Swing Position Sizing Calculator:

Step 1: Enter your available trading capital, for example, ₹1,00,000.

Step 2: Specify the amount of risk you are comfortable with for a trade, expressed as a percentage of your capital. Lower risk percentages are generally advisable. (For example - 2%).

Step 3: Input either the current stock price or the price at which you intend to enter the trade.

Step 4: Enter the price level at which you intend to set your stop loss, e.g., ₹210.

Our Swing Position Sizing Calculator will give you a quick estimation of the capital to deploy and the number of shares to buy on that swing trade. This crucial information will help you manage your risk effectively.

In conclusion, swing trading is a style of trading that can be profitable and less risky than other trading styles. It offers traders an opportunity for potentially quicker profits and reduced stress compared to intraday trading. Our position sizing calculator can help swing traders manage risk and improve their results in the long run!