Any advice to start day swing trading

Money blog -

I want to be active in the stock market with part of my capital. I have no idea about that, though. I'm 72 now and have the time to invest actively. That's why I'm not looking for just any good stock or fund to park some of my money. I want to actively manage my capital every day. Is this realistic? I would use the amount of 100,000 francs for this. P.B.

Trading stocks is exciting and can be a lot of fun if you have the time. I understand from your lines that this is the case with you because you are retired and can therefore devote some time to studying stocks. That is an important prerequisite if you not only want to buy stocks and then leave them lying around, but also want to actively trade, as you describe it.

Before you buy individual stocks or other securities, you should study the markets and companies on which you want to focus. You should closely follow the various business media on the Internet, on TV and in the newspapers and also look at company reports and their information in the investor relations sections on the Internet.

If you want to trade, you need to keep track of vital economic information such as economic data, company news, and analytical reports from banks and other finance companies on a daily basis. That takes a lot of time, but it's also interesting. After a certain period of time, your knowledge will increase and you will understand the connections better.

It is also important that you carefully consider which segments you want to focus on. You cannot overlook all areas and cover them in terms of trading. It takes a lot of effort if you decide to cover the Swiss blue chips that are represented in the Swiss Market Index. That would mean that in addition to the general economic situation, you would have to follow twenty companies as closely as possible. That is unrealistic in the first phase, especially since you write to me that you do not have a very good idea at the moment.

But you can begin to systematically track information and build your knowledge. You can also attend courses from some providers. And you can chat with other active investors on the Internet. In this way, after a certain amount of time and diligence, you can build up a basic knowledge that is absolutely necessary for active trading.

So that you don't pay too much fees, I would choose an online broker who also offers purchases and sales at low brokerage fees. In order to expand my knowledge, I would also take a detailed look at the various online brokers and test their systems before actively trading through one of them.

You can put together sample portfolios with these brokers and follow their development without actively investing any money. Then you will already see a little how it works, but you will not lose any money yet. Such dry exercises are highly recommended.

Under no circumstances should you, in my opinion, start immediately with the CHF 100,000 you are considering. In doing so, you run the risk of losing a great deal or, in the worst case, losing everything. Because you not only have to gather a lot of knowledge first, you also have to gain a lot of experience yourself.

You learn most from failure. Every investor has already had experience with bad purchases. You need to have realistic expectations: if you are lucky, you can make good deals and make money. But you will also quickly make transactions in which you lose money because you misjudged the company or the market situation. That is normal.

This is why it is important that you do not get in with all that money straight away, but only with very small amounts that you can easily lose if it goes wrong. Then it would just have been hard work.

People who are new to the business often overestimate themselves. So my advice: Before you even start, you have to be aware that active trading involves very high risks, and think carefully about whether you can and want to take these high risks.