Swing trading is to buy a stock today and sell it tomorrow or in many days or weeks or months. The main thing is to hold your stock overnight. Swing trading is to follow trends either uptrends or downtrends.
Swing trading vs day trading?
Swing trading is different from day trading. In day trading you should trade within the day, but never hold overnight. If you hold your position overnight to the next day this is called swing trading.
Swing trading vs investing?
In swing trading you should not exceed a position after one year. If you hold a stock over one year this is called investing in a company or companies. Investing requires more work from the investor because he or she should know the company fundamentals. On the contrary swing trading does not require you to know the company.
Advantages of swing trading?
1. Swing trading requires little work from the trader.Less than hour a day to search and picks a stock or more.
If the stock goes up you need only few minutes to check your account.
2. It is suitable for any one who has a day or a night job.
3. A trader can start with any money little or big.
4. Less commissions that means you don't spend too much on commissions like a day trader.
5. A trader does work little compared to a day trader. You don't have to watch the chart day long to make money.
6. No frustration or stress. You buy a stock at the end of the day. You hold it overnight. If the stock goes up you hold it for more days or weeks or months. If it goes down you exit with a stop loss with a small loss.
7. There are always daily opportunities for swing traders. Stocks trend up or down all the time. 8. More money than day trading because you follow the trend and you harvest all almost all the money of the trend. This is because you stay longer than a day.
9. You can follow stocks into a list. When you get a signal to buy, you are ready to do so.
10. You don't need to pay any money to get the stocks. What you need to do is just to learn how to swing trade. With a free stock screener and a free chart, you can make money.
11. You don't need news or company fundamentals or analyst opinion. What you need to do is pay attention to the price which is the basis of our strategies.
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