You can estimate to make a return of 0.5 to 1% a day per swing trade on average when using short up trend line swing trading strategy.
With long up trend line swing trading strategy, you could estimate about 3% or higher a month rate of return.
This rate of return is calculated taking the profit from selling stocks during a month divided by the cost of these stocks sold regardless on when they were purchased. The profit is first calculated by subtracting the cost of purchasing these stocks and the fee paid for sell them from the proceeds.
With long up trend line swing trading strategy, you could purchase stocks in a month and sell it a few months later. You might not buy and sell the same stock within the same often especially, if you purchased it on a low long up trend line.
If you combine long up trend line swing trading strategy with short up trend line swing trading strategy, you might sell a stock in the same month you purchase it if you purchase it on a short up trend line.
The return can vary per stock and the types of stocks you swing trade.
For instance, if you swing trade upward large cap stocks, these stocks don’t fluctuate much in a short period of time. Therefore, the rate of return could be low when using short up trend line swing trading strategy and higher when you use long up trend line swing trading strategy.
As a beginner swing trader, you set a weekly or monthly profit goal for your swing trade.
Periodically, you can check your trades record summary to see what your profits are in relation to your goal.
You could record your swing trades daily in a swing trading recordkeeping workbook to track your purchases, your sales, and the profit after the sales fee.
At the end of the week, you could review your weekly trades and see how much profit you earned for the week.
With long up trend line swing trading strategy, you may not trade daily. Therefore, instead of weekly review, you could do monthly review instead if you do not have time.
However, it is a good idea to do your daily recordkeeping of your swing trades.
After you enter your trades in your swing trading spreadsheet, you could check your YTD earning. Then you do a detail review at the end of the month. But if you could do that detail review on a weekly basis, that will be good.
How to calculate your swing trade profit?
The swing trade profit = your sales amount (the amount you sold all the shares of that stock) – the sales fee – your purchase amount (the amount you paid for all the shares of that stock you sold).
Swing trading return
Your swing trade return = swing trade profit / your purchased amount.
You can calculate the profit and the return rate for each stock purchased when you sold that stock.
Swing trading return on investment
You could calculate the rate of return for the month by taking the monthly profit divided by the value of your brokerage account.
Monthly ROI (Return On Investment) = Monthly Profit / Total Capital invested
You could also calculate the monthly return on investment
ROI (Return On Investment) = monthly Profit / Total cost of stocks purchased that got sold during the month regardless on when they were purchased
Monthly profit = proceeds from selling stocks during the month – purchase cost of these stocks sold regardless of when they were purchased.
How much do swing traders make a month?
Swing trading return depends on:
The type of stocks you swing trade
How long do you hold your swing trades
Your risk tolerance
The type of stocks you swing trade
If you trade large cap companies’ stocks, they may not fluctuate much. Therefore, your swing trading profit will be small.
How long do you hold your swing trades?
If you hold your swing trades through multiple swings, you could make higher profit.
If your average holding time is 3 days, the large cap stocks may not generate higher returns within that short period of time compared to if you held it for a month assuming you purchased it on a low support line on its way up.
Your risk tolerance
If you have a high level of risk tolerance, you might use a swing trading strategy that can generate a higher profit.
Conclusion: Swing trading monthly income
Our monthly swing trades overview allows us to review our monthly swing trading income as well as different monthly reports generated from the daily swing trade transactions.
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