5 Key Insights On Swing Trading Success Rate

Whether you’re looking to get started investing and are curious about what’s possible or are simply wondering how your returns compare to the typical trader, it’s worth knowing the average swing trading success rate.

First, understand that success is not one size fits all. For the sake of simplicity, we’ll focus on the typical rate of returns when following a swing trading strategy. In general, earning a profit of 1-2% monthly is a good target to aim for.

We know what you’re thinking…doesn’t sound like much. But that can compound between 12-24% annually, and most professional swing traders agree that this is a really solid year’s work.

Unfortunately, very few swing traders ever actually enjoy success. A large part of this is due to the fact that humans tend to be emotional and undisciplined. That’s a recipe for disaster with any investment strategy but especially swing trading.

We’ll share tips on boosting your swing trading win rate below. But why not take the first step today and join countless other swing trading success stories at TraderLion? Our Swing Trading course can give you an edge in the market – find out how!

The Basics of Swing Trading

For those just discovering the concept of swing trading, it’s a strategy involving short-term trades executed over the course of a few days, or at the very most, a week or two.

The goal is to profit from market swings. You buy at support levels and sell at resistance or capitalize on momentum shifts. This involves a whole lot of technical analysis, with little attention paid to the stock’s fundamentals.

After all, you don’t care about earnings or the company’s position in its industry. You just want to find a little price volatility that you can take advantage of. So, your focus will be on tracking moving averages, trendlines, and candlestick swing trading patterns to identify entry/exit points.

Swing trading thrives in trending markets. Whether that’s a bull market or bear market is irrelevant – there is money to be made either way, as long as there is some predictability as to how the stock will move.

Swing trading is ideal for traders who want more flexibility than day trading but still prefer a hands-on approach. You will need to spend more time managing your positions than with a classic long-term buy-and-hold method, but it’s less involved than day trading or options trading. 

Successful swing traders develop a structured trading plan, use stop-loss orders, and follow market trends with discipline. On that note, though, what’s the typical swing trading success rate?

What is the Typical Swing Trading Success Rate?

It’s impossible to give you any idea of what you can actually expect since there are so many moving pieces with swing trading. The specific strategy used, an inventor’s risk tolerance, and the market conditions themselves all influence the success rate with swing trading.

Plus, there’s no sort of database where swing traders have to report their wins or losses, so all we have to go on is limited anecdotal evidence. That being said, experienced traders report win rates between 35% and 50%, with returns ranging from 12% to 45% per trade.

Just remember, though, that investors are quick to run and tell you when they have a good month or a good year but may go quiet when things aren’t so prosperous. The actual swing trading win rate across all investors is probably much lower. The same can be said of returns.

Based on our own experience swing trading over the years, we’d be very happy to generate returns of 10-30% annually through this strategy. On a $100,000 portfolio that would be somewhere between $10,000 to $30,000 a year.

Given the time commitment of swing trading – just a few hours a day – it’s certainly a lucrative opportunity. But is it realistic to assume you’ll enjoy this same swing trading success rate? What percentage of swing traders are “successful?”

What Percentage of Swing Traders are “Successful”?

Similar to the swing trading success rate, it’s not really possible to tell you with complete certainty how many swing traders are successful. 

There’s no telling how many people get started swing trading, experience a few losses, and then never try again. But what we do know is that most people who try swing trading will have difficulty achieving consistent profits.

One stat that stands out is that as many as 90% of active traders lose money. This goes to show just how important proper education, strategy development, and risk management are. 

Because of that 90% who fall short, we’d wager most are rushing in to implement their strategy without taking their time to learn or practice with paper trading.

It’s also very likely that these investors aren’t setting up stop losses and take profit orders, and are investing based on emotion rather than facts. This is to say that you can dramatically increase your odds of success simply by investing in education and following a sound strategy.

How Can You Boost Your Swing Trading Win Rate?

It’s easy to get discouraged when you’re comparing your own success rate to that of the most successful swing traders, but they aren’t doing anything you can’t do yourself. It just comes down to education and precision execution without emotion. 

We’ll share some tips below to help you set out on the right foot if you’re just getting started, or if you’re already implementing swing trading strategies, boost your swing trading win rate.

Mastering Risk Management

The reason so many swing traders aren’t seeing a solid rate of success isn’t because they aren’t winning trades. Rather, it’s how big their losing trades are. For every few profitable trades they make, they’ll have one single trade cost them all the profits they worked so hard for.

The key is to set up stop losses so you can quickly close out positions when things aren’t going your way. Having these in place on every trade you make ensures you don’t get stuck sitting in your position waiting for it to turn around.

Set stop-loss levels based on technical support or resistance levels, volatility, or a fixed percentage to protect capital. For example, we recommend you never take on more than a 3% loss on a trade.

Similarly manage position sizes to avoid costly account blow-ups. You shouldn’t wager more than 1-2% of your total capital on a single trade. Be careful about taking leverage, too, as it can amplify losses just as easily as gains.

Psychology and Discipline in Swing Trading

A trader’s mindset is just as important as technical skills, if not more so. Emotional trading leads to impulsive decisions, overtrading, and holding onto losing positions for too long. This is a bit harder to teach, though, which is why so many traders struggle with it.

Have a plan for every trade you make and stick to it. Define entry and exit levels before placing a trade so you’re not being reactive. Be patient about the trades you take, too. Not every day is going to bring good opportunities. Knowing when to sit on the sidelines can save you from big losses.

When losses do occur, don’t fall into the trap of “revenge trading,” where you attempt to recoup those losses quickly in a series of new trades. This can lead to compounding mistakes that eventually dwindle your account down to nothing.

Leveraging Trading Tools and Technology

The days of relying on dated technical analysis are long gone. The most successful swing traders rely on trading tools and technology for one simple reason: these remove emotion and human error from the decision-making process. Here are some popular options:

• Stock screeners: Identify high-probability setups based on price action, volume, and technical indicators.
• Real-time alerts: Stay updated on market conditions, price movements, and trade triggers without constantly monitoring charts.
• Backtesting: Analyze historical data to refine trading strategies before deploying them in live markets.
• Automated trade execution: Reduce slippage by setting up predefined entry and exit orders.

One such tool you might consider adding to your arsenal is Deepvue – more on that in a moment.

Working With the Market Conditions Rather Than Against Them

Understanding when to trade and when to step aside is an essential mindset shift for swing traders. Remember, this strategy works best in trending markets. Avoid counter-trend setups unless you have experience with reversal strategies.

High volatility means larger price swings, and that means you need wider stop losses and adjusted position sizes. On the contrary, calmer markets call for tighter stops and quicker exits.

Even though swing traders don’t necessarily need to stress about a stock’s fundamentals, it’s still worth being aware of earnings and news events. These can create gaps that disrupt trade plans.

Join Countless Swing Trading Success Stories at TraderLion!

Swing trading success necessitates a proven system, executing with discipline, and continuously refining your strategy. Let us teach you the ropes here at TraderLion! 

Our Swing Trading Masterclass is taught by none other than Oliver Kell, the 2020 US Investing Champion who dominated the market with a 941% return. While that’s not the typical swing trading win rate you should expect, you can put the same principles into practice. You’ll learn:

• Price Cycle Mastery: Learn to read market trends and time your trades like a pro.
• Finding True Market Leaders: Identify the strongest stocks with explosive potential.
• Super-Performance Setups: Execute high-probability trades with confidence.
• Selling & Risk Management: Lock in profits and minimize losses effectively.
• Building a Champion System: Develop a repeatable trading process for long-term success.

These are battle-tested strategies that Oliver used to turn a small account into a championship-winning portfolio. You get lifetime access so you can learn at your own pace and revisit specific aspects.

You can find other resources here at TraderLion as well, from our Stage Analysis course to the Mark Minervini strategy and more. You can also improve your swing trading win rate with Deepvue, a cutting-edge trading platform designed to give you an unmatched edge.

With real-time data, advanced charting, AI-driven trade signals, and customizable stock screeners, it helps you identify high-probability opportunities faster and execute with precision. Set yourself up for the highest rate of success with swing trading today. 

Final Words on the Average Swing Trading Success Rate

Swing trading success isn’t about luck. It requires strategy, discipline, and the right tools. While most traders struggle to stay consistently profitable, there are plenty of swing trading success stories. 

The difference? These investors master risk management, psychology, and technical analysis. They also recognize that there’s only so much they can do on their own. They invest in education and technology to enjoy higher, more consistent returns.

You can do the same. It starts here at TraderLion. Take your swing trading to the next level!