Saturday, October 4, 2008

Swing Trading Stock: A comparatively easy way to make money

One of the various methods of stock trading is Swing Trading Stock. In fact, this method has far more advantages than the other trading formats. A comparative study of the different methods show that the Swing Trading Stock method lies half way between Day Trading and Position Trading. On one hand when Day Trading requires that you should be stuck in front of the chart for the entire day, on the other hand you need to hold your position for months in Position Trading. In either case there are inherent drawbacks which minimizes the effect of the cause for which people trade in stocks. In the first variant, the entire day is spent as if you are in a job! Position trading prevents the trader from enjoying the benefits of the short term and the invested money stays invested in the market for months! Swing Trading Stock is somewhere in between and you need to hold your position for a few days or weeks.

The traders must provide enough attention so that they are able to recognize and judge the fluctuations in the market when they decide to choose Swing Trading Stock. The greatest advantage of this method is that it makes use of the oscillating feature of the stocks to derive profits even when the stock prices are not very high. The emotional factor is ruled out in the Swing method and hence, the method of trading stocks is always safer as compared to Day Trading. If the trader is a somewhat disciplined and systematic (which is no doubt a requirement), he or she can do well in the Swing method. A newbie or a job holder or even a very busy person will always find this method of stock trading to be convenient!

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