It looks like it is a little large. I have found that most people prefer their pouches to hang no lower than their belly buttons. It should be a snug fit for your baby but not so tight you can’t get them inside. I think if you can get a smaller fitting pouch, it won’t feel so swingy and insecure.

Also your baby appears to be turned to the side. The main problem with this is that she/he might not get enough air. For safety, it is best if you turn him/her so he/she is facing upward in a slightly reclined position and place a folded receiving blanket underneath to lift him/her so the baby isn’t sitting quite so deep inside the pouch. Their bottoms should be positioned on the seam.

The Babywearer website has a lot of additional information on how to get comfy with your new sling, tips and tweaks and lots of lovely parents and caregivers full of information so check them out.