Swing traders take advantage of short to intermediate term trends which could last anywhere from 1 – 30 days. The disadvantages do position trading is that you need a combination of technical and fundamental analysis skills, compounding has a much smaller effect on your profits and you have a lot cash reserve tied for up an extended period of time. In conclusion, different trading styles suit different people’s needs and their risk ratios.
Swing traders tend to be the more experienced of spread bettors and will use technical indicators such as Fibonacci Retracements and Stochastic Oscillators to find price reversal and trends emerging.
The basic premise behind why the stock market exists is because companies need money to grow. A private company turns into a public company and that is when a company first appears in the stock market.The stock market can be compared to eBay.
Eventually a company gets so large that they stop lending money from their friends, local banks, and family.
The left over shares have value and the general public decides what that value is based on the stock market. One random example would be if a certain company goes up during a certain time of year.If we assume that Apple will make more sales during the holiday season then we may be able to assume that its stock price will go up during that time of year. Instead I turn on my computer and begin looking at a chart, do a few minute pre market analysis, and begin trading.Most people that we call day traders look at the market which strictly technical analysis.
The only difference between the three is the amount of time they are involved in positions.Scalper TradersProfessional day traders that make money in the stock market with high frequency and lower profit are called scalpers.
Our live classes are normally a few hours as well since the best activity in the markets come within the first few hours.Swing tradersProfessional day traders that make their money swing trading involves a much longer period of time.
A swing trader uses fundamental or technical analysis but stays in trades over a few days or even weeks. One of the reasons I love to make a living day trading is because we actually make more money and an economic downturn and a crisis than we do when things are going well. A bit of novice background of how I make a living day trading & traveling around the world.
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