All possible risks of swing trading?
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wittie
Apprentice
Joined: 16 May 2006
Posts: 4
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 Posted: 10/02/08 - 09:01 Post subject: |
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| Hi there people. My name is Tom and I would appreciate if you could tell me couple of things about one trade method called swing trading. Can you explain to me what is all about and how is it difference than, for example, day trading. What are all possible risks of swing trading? Thank you. |
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nial
Apprentice
Joined: 17 Jan 2006
Posts: 1
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| Posted: 10/17/08 - 06:25 Post subject: |
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| Hello there Tom. Well, here is the thing. Main difference between day and swing trading is how long you keep the security once you buy it. If you hold it for a short time, which means you buy it and sell it in one day, that would be day trading. Swing trading is when you hold the securities for a longer period of time. It all depends on the market and what are your preferences when choosing the method. However, there is a risk that the market will have a long-term downturn, which will lead you to losses. |
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ermanno
Apprentice
Joined: 30 May 2005
Posts: 2
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| Posted: 11/01/08 - 03:48 Post subject: |
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| Hello to you too Tom. I want to add something. If you are interested in investing, if you are new to the market, I would advise you not to choose day trading. Day trades require someone with experience, who know market well and who is ready to react in an instant. On the other hand, important factor is market condition. If it is in extreme condition, then you should go for daily trade. The risk of a swing trade is that you won’t be able to use market changes to get some profit. |
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