Swing Trading Stocks

Among the various types of trading, swing trading stocks provides a great balance between the stress filled Scalping and Day Trading methods, and longer term investing strategies.

Each type of trading has it's own characteristics and requirements, making each method more or less likely to produce profits based on each of our personal situations.

Plain english: you're going to have to learn about the various types and test them out to see what works for you.

Let's take a look at some of the methods and a couple of their traits, characteristics and potential requirements and then see what benefits Swing Trading may provide:

Scalping

I've previoulsy written about Scalping with examples and my point of view here: Scalping - Trading in Quick Timeframes. This type of trading typcially is the most stressful due to the sheer number of trading situations you'll find yourself in throughout the day.

You'll have to make yourself available during pre-market and the opening hour(s) of the trading session in particular. Depending on what time zone you live in, this may be exactly what you need, or it may be something that simply is not possible based on your availability.

Research is typcially done on the fly during the trading session, although some research for potential stocks to watch can be performed while the markets are closed. You'll also have to be able to make quick, instant decisions without any distractions.

Day Trading

Day Trading will typcially have you in one or a few different positions throughout a single trading session, with all positions closed by the end of the day. This type of trading can be done in morning or afternoon hours.

Long Term Investing

Probably the least stressful, although not stress-free by any means. With long term investing, research can be done when the market is closed as well as checking in on any current positions daily, weekly or even monthly. Some trading systems will even utilize annual portfolio rebalancing.

Swing Trading Stocks

As I first mentioned above, this type of trading offers a nice balance and is used successfully by many traders. Research can be done any time of the day, positions can be checked during or aftermarket hours, tighter stop losses can be used in comparison with some longer term investing strategies since this method counts on getting into new positions on a pullback.

The chart below is an example with ideas for swing trading stocks taken from my previously written page on Swing Trading.

Swing Trading Stocks



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