Is it possible to earn 6-8% returns monthly in swing trading?

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Everyone taking part in swing trading has asked about the returns in the past few years. It is no wonder that a lot of traders are curious about returns. But what about every month? Can you earn 6-8% returns every month with swing trading? It is ideal to want to know how much return you will earn when you are in swing trading. It is a proven fact that while in swing trading, achieving such a percent of return may be difficult. But, it is not impossible as we not only will answer this in detail but share swing trading strategies in India to do so.

A Quick Overview of Swing Trading

Swing trading is a short-term stock investment. The key elements of swing trading are timing and making profits by buying at a lower price and selling at a higher price. According to Investopedia, “Swing trading attempts to capture gains in the stock market over the short term. Swing traders employ technical analysis to buy low, sell high and lock in profits.”

The returns are not guaranteed but will increase with good timing, research, and risk management fig. The average return of swing trading is said to be 10%. Of course, it is never possible for you to get these exact ures all the time. Although the overall performance depends on how you do your trades and how many trades you take part in. It can immensely help you achieve your monthly return easily.

In swing trading, you must have a solid knowledge of technical analysis. You should know how to analyze charts and think rationally. You have to do your homework and combine it with a bit of luck. Trading is always risky but with proper analysis, it can be rewarding. The key is to understand the market and trade accordingly.

Swing trading sounds like a very good idea but there are many questions about returns in such trades.

What would be your average return per year and month?


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Everyone who has an experience in swing trading would advise you to aim realistically when setting a return goal. While aimless trading can be very profitable it is best to know what your average return per year and month would be. That way it can help you set your mind at ease when trading.

The market has a way of changing what is successful to make traders abandon their strategy. The key is to know what your average rate of return would be and then make decisions on whether they are good enough or not. A good strategy should be able to help you achieve your goal. Here’s a small glimpse of what the average return per year and month would be for swing traders.

What returns can we aim for in swing trading?


Having an idea about what the average return would be is one thing, but it’s another thing when you have to aim for the returns. You should always aim high because what is there to lose if you fail? Failure is just a lesson that makes you stronger at the end of it all. Our question to you is “Why to limit yourself?” Aiming high and achieving it will only help boost your confidence in trading. An 8% return is an attainable return.

Is it possible for an average trader to earn 6-8% returns per month?


It will be hard to achieve 6-8% returns per month with swing trading. It is hard but not impossible. Analyzing the market and doing your homework will help you achieve those types of returns. It is possible, but again, it depends on how you do your trades. Technical analysis will play a huge role in this and so will risk management.

Having an idea about what your average return would be can help you decide if 6-8% monthly returns are possible for you or not. Of course, achieving this is not easy but that does not mean it is impossible. Swing trading requires time and proper analysis to achieve the goal. How long it takes to achieve these returns?

One of the biggest reasons why people shy away from swing trading is that they don’t want the efforts and work put in to be wasted. No one wants that, but this is not a question about caring about your hard work, rather it is about making sure you match your goals with your ability. When setting up a monthly strategy for swing trading, you have to understand the market. You have to analyze charts and gather information on what the market is doing to understand what is going on and how you can improve it. Making decisions on when and where to pull in profits will help boost your returns.

How to achieve this?


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The main thing is to know where you are starting. What is the average return per year and month with swing trading?

The second thing is to keep track of your returns. Whether it was a success or a failure, what was the key to achieving your goal? Was it all based on luck or was there a pattern in your strategy that helped you achieve it? When you know what went wrong, you can then put focus son succeeding again.

Asking these basic questions will help you understand what your goals are and how to reach them. Success comes from knowing why and how. If you don’t have that knowledge, you can’t do anything about it. And that is why you should always research and find out about your goals.

Swing trading isn’t easy but it is possible. Take a look at the current market situation and study the charts. When you are analyzing a chart, keep in mind that there are patterns to look for when it comes to price movements and trends of the stock. The more you learn the more your returns will increase over time.


Overall, swing trading is a very good way to earn money. You have to have a solid knowledge of the market and be able to analyze charts to make decisions on what to do next. Or else take the swing share trading advice in India we mentioned and you will achieve such return. This is the most important part, knowing when to buy and sell. Then you will know when you are making the right decisions and when you are wrong and that means losing money. The key is not falling into risk-taking but being able to control your risk at all times so that you can maximize your returns with each trade. It’s about understanding the market and being able to work with it successfully.


1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.


The research analysis is prepared by Arijit Banerjee, CMT, CFTe. He is a veteran trader and an active investor having in-depth knowledge in financial market research, advanced technical analysis, market cycle, algorithmic trading and portfolio management. Arijit is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts, USA. SEBI, the regulatory body of Indian financial market also recognizes him as a Research Analyst (INH300006582).


The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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