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- Thread starter jangubaba
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Swing Trading - Principal Difference Between Day Trading & Swing Trading Is That Swing Traders Wil Normally Have A Slightly Longer Time Frame Than Day Traders For Holding A Position In A Stock Or Its Futures. Swig Traders Also Attempt To Predict Short Term Flctuation In Stocks Price. However, Swing Traders Are Willing To Hold Stocks For More Than A Day, If Necessary, To Give The Stock Price Time To Move Or Capture Additional Momentum In The Stock's Price. Swing Traders Generally Hold On To Their Stock Or Futures Positions Anywhere From A Few Hours To Several Days.
Swing Trading Has The Capability Of Providig Higher Returns Than Day Trading, Unlike Day Traders Who Square Off Their Positions On The Same Day Before The Market Closes.
Swing Traders Assume Overnight Risk, There Are Some Significant Risks In Carrying Positions Overnight. For Example News Events & Earnngs Warning Which May Get Announced After The Market Closing, Can Result In Large & Probably Adverse Price Change The Next Day, Similarly Good News Can Give Significant Rise The Next Day.
Advantages: Slower Cyce Of Trades, Translating Into Lower Impact Costs & Less Chance Of Error & Ability To Catch More Significant Multi Day Upmove. Technical Analysis Is Primarily Used To Identify Such Opportunities.
Disadvantages: With Higher Profit Comes Higher Risk Per Trade Over A Longer Time Frame, One Will Need To Expect Average Risk Per Trade To be Higher To Account For Retracements, Which Are Common In Both Equity & Derivatives Trading & Some Other Points Mentioned Above.
There Is Wealth Of Knowledge Here In Forum For Those Willing To Dig Through...
Happy & Safer Trading
SavantGarde
Swing Trading Has The Capability Of Providig Higher Returns Than Day Trading, Unlike Day Traders Who Square Off Their Positions On The Same Day Before The Market Closes.
Swing Traders Assume Overnight Risk, There Are Some Significant Risks In Carrying Positions Overnight. For Example News Events & Earnngs Warning Which May Get Announced After The Market Closing, Can Result In Large & Probably Adverse Price Change The Next Day, Similarly Good News Can Give Significant Rise The Next Day.
Advantages: Slower Cyce Of Trades, Translating Into Lower Impact Costs & Less Chance Of Error & Ability To Catch More Significant Multi Day Upmove. Technical Analysis Is Primarily Used To Identify Such Opportunities.
Disadvantages: With Higher Profit Comes Higher Risk Per Trade Over A Longer Time Frame, One Will Need To Expect Average Risk Per Trade To be Higher To Account For Retracements, Which Are Common In Both Equity & Derivatives Trading & Some Other Points Mentioned Above.
There Is Wealth Of Knowledge Here In Forum For Those Willing To Dig Through...
Happy & Safer Trading
SavantGarde