What is the difference between day trading and swing trading?
A. Day traders usually buy and sell securities during the same market day and, as a general rule, do not hold stocks overnight. They are therefore said to be “flat” at the end of the day. Many day traders make dozens of trades every market day hoping to capture profits that arise from small intraday price fluctuations. Swing traders usually hold a stock from one day to a week. Most swing traders concentrate on just a few selected stocks that they believe will likely make a significant move in price in the near-term. Q. What rules do you think are the most important for day traders? A. There are many important rules that day traders should adhere to but the most important of these are: Always trade with the trend; Cut losses short; Never get emotionally involved with your trades. Q. How much capital is needed to begin day trading? A. Generally, an aspiring day trader should have enough trading capital to enable him or her to buy at least 1000 shares of any given stock on any particular
