Swaddling a baby can help provide comfort to the baby but just avoid swaddling the baby too tightly because yes you can swaddle a baby too tightly.
Be sure you can put a finger between the swaddling blanket and the babies body otherwise you risk the baby not breathing properly which can lead to death.
Some babies also do not even like to be swaddled so if they do not like to be swaddled there's no need to swaddle the baby.
Personally I would never even bother swaddling the baby because although it can comfort a baby it can increase the risk of the baby dying from SIDS.
After 4 months of age the baby will no longer require or want any swaddling so you can stop swaddling the baby around 4 months of age.
If you do swaddle the baby make sure the swaddling blanket is not on the baby too tight to allow the baby enough breathing room around it's chest.