Relatively low profitability in points of one trade. A swing trader enters the market on pullbacks at the best price and closes the trade at the next reversal. One movement on average is 5-15 pips, depending on the timeframe, while in intraday strategies within the average volatility, you can take profit of more than 20 pips. Only scalping has a lower profitability.You need to understand the regularities of market movements, constantly monitor the news to successfully employ a swing trade strategy.The local corrections can occur because of fundamental factors or the influence of the institutional investors, market makers. A trader must understand the reason for the current price movement. So you must always track the news and have some kind of intuition and flexibility to quickly adjust your trading decisions.Psychological stress. A trader must identify the trend, constantly look for the best entry points and exit the trades on time. When you are in front of your computer all the time, you could feel tired, lose your focus and suffer from emotional stress.
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