I thought about whether swing trading is suitable for people who cannot watch stock prices during work

“I can’t watch stock prices while I’m at work, so maybe I’m not cut out for stock trading.” When you become interested in investing while working as a company employee, I think many people harbor this kind of anxiety. It is true that you cannot be glued to the market all day long. If you are lucky, you might be able to take a quick look at your smartphone during breaks between meetings or tasks, but there must be many times when you cannot look at it at all.

So, are people who cannot watch stock prices during work not suited for swing trading? To conclude, that is not necessarily the case. In fact, there are situations where the condition of not being able to watch is surprisingly compatible with the swing trading method. Today, I would like to organize the reasons for this and the points that people who cannot watch should be careful about, for beginners.

First of all, what is swing trading?

Swing trading is a method of holding positions for a period ranging from several days to several weeks, aiming to profit by capturing the “waves” of stock prices. Compared to day trading, where buying and selling are completed in a matter of minutes to hours, the holding period is longer, and the sense of time spent on a single trade is significantly different.

In day trading, you react to minute price movements within a single day and repeat buying and selling. Therefore, you need to be facing the screen during trading hours. On the other hand, swing trading focuses on the larger flow over several days rather than the minute movements of a single day. This difference is greatly related to its compatibility with people who cannot watch stock prices during work.

Situations where “not being able to watch” actually becomes a strength

In swing trading, there is little need to be swayed by minute price movements during the day. The materials used for judgment are mainly closing-price-based charts and trends over several days. These can be checked calmly at night after trading has ended.

Furthermore, not being able to watch has psychological benefits. If you keep watching stock prices during the day, you tend to react to small price movements and take actions that differ from your original scenario. You get anxious and sell just because it dropped a little, or you get greedy and sell just because it rose a little. Such trading driven by emotions is less likely to occur in an environment where you cannot watch.

In other words, the constraint of “not being able to watch” can, as a result, help reduce unnecessary trading and help you act according to the rules you have decided.

The difference between those who are suited and those who are not

However, it does not mean that everyone who cannot watch will succeed. What determines suitability is not “whether you can watch,” but “whether you can manage it with a system even in a state where you cannot watch.”

Those who are suited are people who can decide on criteria for profit-taking and stop-loss before entering a trade. Also, those who can prepare a system that automatically executes buying and selling at decided levels using order functions. Furthermore, those who can have the habit of checking calmly at fixed times, such as at night or on holidays.

On the other hand, those who tend to feel it is not for them are people who cannot focus on their work because they are constantly worried during the time they cannot watch. Or, people who are the type to want to act on the spot without deciding on criteria in advance. In such cases, it is realistic to keep the size of your positions small, or start with a small amount first to check your own sense.

Three preparations that people who cannot watch should at least have

If you are a person who cannot watch stock prices during work and want to engage in swing trading, I recommend the following three preparations.

The first is to set a stop-loss order at the same time as entering a trade. Even if the stock price drops sharply while you cannot watch, you ensure that it is automatically sold at a pre-determined level. However, you need to be aware that if a gap occurs, there is no guarantee that it will be executed at the set price.

The second is to limit the number of stocks you hold. Since the time you can watch is limited, there is also a limit to the number of stocks you can manage. At first, keeping it to about 2 to 3 stocks will reduce the burden of checking.

The third is to grasp important schedules such as earnings announcements in advance. If events that create large price movements overlap on a day you cannot watch, it becomes difficult to respond. Just putting the earnings dates of the stocks you hold into your calendar in advance serves as preparation.

Decide on the timing for checking

For people who cannot watch, deciding on the timing for checking is very important. For example, checking the US market of the previous day and the status of your holdings before commuting in the morning. Checking the status of orders during lunch break. Summarizing and checking the day’s price movements and charts at night, and so on.

If you fix the timing for checking, you can focus on your work without thinking about the market during other times. Avoiding the state of ‘not knowing when to look, so I can’t help but worry’ is also a major advantage.

It is okay even if there are days when you cannot look at all

There may be days when you cannot look at the market at all, such as days with all-day meetings, business trips, or busy periods. On such days, confirm your order settings by the night before. If necessary, skip new entries and keep the size of your held positions smaller than usual.

Preparing with the assumption that there will be days you cannot look is a way to continue for a long time.

There is no need to force yourself to believe it is ‘suitable’

So far, we have looked at the reasons why even those who cannot look can engage in swing trading. However, the best way to confirm whether it suits you is to actually try it.

Start with a small amount and continue for a few weeks to a few months. During that time, you can verify with your own senses how much stress you feel during the times you cannot look, and to what extent you can feel at ease with the order mechanisms.

Summary

It is not necessarily true that people who cannot check stock prices during work are unsuited for swing trading. It is a method that looks at trends over several days, and since you can check calmly at night, there are actually situations where it is a good match. What is important is not the length of time you can look, but whether you can manage it through a system of setting criteria, utilizing orders, and fixing the timing of checks. Trying it with a small amount first and finding a form that fits your life should be the first step to continuing without strain.

This article is merely my own consideration and does not recommend the buying or selling of any specific stock. Please make final investment decisions based on your own information gathering and responsibility.