Swing Trades, Day Trading, Stock Picks - The Difference Between Day Trading and Swing Trades
Both styles of trading hope to make money from short term fluctuations in the market. They are trading styles. You have to have a steady focus and healthy heart.
Swing trades differ from day trading only in their flexibility. Day trading proponents get out every day. Swing trades may finish in a day, but are just as likely to last for a few days. There is potential to earn more from swing trades, but there are risks.
While day trading has no overnight risks, swing trades are at the mercy of news and earning reports that occur outside of the trading day. This news can affect the stock picks poorly, totally beyond the control of the swing trade schedule.
When you like to do swing trades, you’d better have a good source of stock picks. How you create your criteria for stock picks can be a real mix of philosophies, but the most important thing is to stick to your formula.
Because of the quickness of short term trades, there is little time for indecision. This is where swing trades must have clear guidelines, stops and losses. When the stock hits the number, you’re out.
It is possible to trade a few stock picks on a regular basis, and shift them out as they become less predictable. It helps to have a list of ‘to watch’ stock picks to rotate in. If you have a reliable stock pick resource to start with, it gives you a head start in find new stocks.
However you do it, establish your criteria, for both the swing trades parameters and new stock picks, away from the emotion of the trading process. The emotions run high, even in the coolest swing trades.
Stephanie Mundle is the managing editor of http://www.MoneyMasteryForum.com an informational forum site for the average investor. Take a look. Information on forex, debt, money management, investing and business.
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