Why Stock Trading is Better Than Investing?

Stock trading and investing are both methods for making money, but they have different approaches and philosophies. Let us try to understand stock trading and get familiar with the few swing stock trading advice in India.

Advantages of stock trading

  • Allows for quick profits through buying and selling stocks in short-term time frames
  • Offers more control and flexibility in terms of when to buy and sell stocks

Advantages of Investing

Advantages of Stock Trading

  • Investing can lead to the long-term growth of wealth through buying and holding onto stocks for an extended period
  • The returns of the stock market are always higher than other investments or even compared to any savings accounts

In the end, whatever option you choose, accept the fact that returns depend upon your financial goals and the risk you can tolerate along with the tactic you designed for investment.

What is swing stock trading?

Swing trading is a kind of stock trading that involves holding onto stocks for a few days or even a few weeks. And in this time interval, the trader seeks to profit from a variation in the stock’s price. Swing traders perform detailed technical analyses or even recognise the latest trends in the rise or fall of a stock.

Moreover, here are a few factors that make stock trading a better alternative than investing:

  1. Short-term profit: Stock trading allows for quick, short-term gains through buying and selling stocks.
  2. Control over investments: In trading, you have more control over investments and can make decisions quickly based on market conditions.
  3. Flexibility: Stock traders can take advantage of market fluctuations and change their strategies as required.
  4. Potential for higher returns: Stock trading can lead to higher returns, particularly with swing trading strategies. In swing trading, traders buy stocks to hold them for a few days to a few weeks, taking advantage of short-term price movements.
  5. Risk tolerance: Stock trading is not for everyone and requires a higher tolerance for risk. Traders need to be able to handle the stress of making decisions quickly and potentially losing money.

It’s not necessarily true that stock trading is better than investing, as both have advantages and disadvantages.

Swing trading is a popular style of stock trading in India, where traders hold positions for a few days to several weeks, aiming to take advantage of short-term price swings in the market. In this trading, traders often use technical analysis to identify potential trade setups and make decisions based on chart patterns, support and resistance levels, and other technical indicators.

To swing trade stocks in India, you need to have a brokerage account with a stockbroker that allows online trading, and you must be familiar with the stock market regulations and the risks involved. It’s important to note that swing trading, like any other form of trading, carries the risk of losses, and traders should have a well-defined strategy and risk management plan in place. For getting the best swing trading calls in India check in to goodluck capital’s website.

successful swing trading in India

Here are five tips for swing stock trading in India:

1. Do your research: Research is crucial for successful swing trading. You must understand the companies you’re investing in. You must have an understanding of your financial health, as well as the broader market conditions. It will help you make informed decisions about when to buy and sell stocks.

2. Have a strategy: A well-defined strategy is crucial for successful swing trading, which means you must know your entry and exit points and how much risk you’re willing to take. Make sure to stick to your strategy and never take a reckless verdict.

3. Use technical analysis:Technical analysis is an effective tool for swing traders. It provides insights into a stock’s price movements and trends. Familiarize yourself with popular technical indicators, such as moving averages and momentum oscillators, to help identify buying and selling opportunities.

4. Manage your risk:Swing trading inherently involves risk, as stock prices can be unpredictable. You can easily manage your risk by diversifying your portfolio across different sectors or in diverse stocks.

5. Stay disciplined:

  1. Disciplined and consistent execution of your swing trading strategy is key to success. Avoid making impulsive decisions and stick to your pre-defined entry and exit points. Also, be patient and don’t try to time the market, as this can lead to poor investment decisions.

However, always seek positional trading tips India from a financial advisor before engaging in swing trading. Unlike any other country, swing stock trading in India also has its principles. Tips for successful swing trading in India include staying up to date with market news, having a well-defined strategy, and controlling emotions.

It is important to note that stock trading and investing have pros and cons, and the best approach for you depends on your individual financial goals and risk tolerance.


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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