Whats the difference between swing trading and day trading?
Swing Trading is short term investing. You hold a position overnight, for 2 to 10 days. You can plan each trade thoroughly and review the progress each evening, without emotion. Also, swing traders look for a multiple percent return in the range of 3% to 7%. Therefore, they can reduce risk by not investing too much money in one trade and still make solid gains. The major risk is if there is detrimental news overnight that affects the opening price the next day. Day Trading is when you open and close a position in the same day and do not hold it overnight. The risk of overnight news affecting the next day’s opening price is eliminated, but you take on other forms of risk. Day traders look for 0.5% to 1% moves in their favor. In order to make money to overcome the commission costs, the investments must be extremely large. Any move against them can be quick and devastating. Also, decisions must be made on the fly. There is no time to plan a trade. Therefore, emotion controls the trading d
