What is Day trading , Swing Trading and Trend Trading ?
The person above is incorrect in his description so it is no surprise why he has had no success in trading and is negative towards it. You can be successful at any business you choose, but since the barriers to entry are lower in trading than in most businesses, it does tend to draw those that are the least prepared. The success rate in this business is about the same as any small business-about 90% fail, 5% don’t make much, and 5% succeed. Day trading is simply opening and closing positions during the same trading day-it is usually used to describe the holding of positions anywhere from about 5 minutes to a few hours (positions held for seconds or minutes are usually described as scalps, but many describe scalps as day trades). Whether the position is short or long is a non-issue. Swing trading refers to holding positions for days or weeks-still short-term but a longer time frame than day trading. Trend trading simply refers to trading based upon trends that are expected to continue.
day trading = you see the news or the stock screen and whenever stock moves either ways, you either short it or buy it and sell it, shorting = when you take stock from your broker, sell it in the market, and buy it back at a lower price, the difference being your profit, broker gets the brokerage. swing trading = you see a swing in a stock = you see a pattern in movement of a stock ( like it moves 6% then bounecs back 4% then moves back 6 again.) trend trading, you watch the news, and whenever you get favorable news, you buy the stock, and whenever you get bad news about company, you short it. in all three situations you buy/sell it the same day, either profit or with loss, you dont’ take positions to next day. and one piece of advise dont’ start it, you will ruin your hard earned money. in these day trading business none earns except the brokers. for one successful person you heard of, there are a thousand who lost.
