Ask Colin

Do you agree with Dr Elder that beginners should learn swing trading before they try trend trading?

Yes and no.

I think most people will find swing trading easier simply because you do not have to sit through such large corrections. However, the penalty is transaction costs.

There are some people who are temperamentally more inclined to swing trading than trend trading and vice versa. It is always important to trade the way you are most comfortable naturally - especially until you learn the game.

For those who think their temperament suits a plunge straight into trend trading, the big risk is that they let big losses accumulate thinking they are sitting out a correction when they are really in a downtrend. This is not easy to do.