So really what you are discussing is Swing trading
Post# of 75011
Posted On: 10/19/2016 9:02:10 AM
Re: Tombstone3821 #27092
So really what you are discussing is Swing trading
Swing trading involves holding a position either long or short at least overnight and or up to several weeks. The goal is to capture a larger price move than is possible on an intra-day basis. Swing trading assumes a larger price range and price move and therefore requires careful position sizing to minimize downside risk. Swing trading can involve a mix of fundamental and technical analysis. Swing trades usually rely on larger time frame charts including the 15-minute, 60-minute, daily and weekly charts. Swing trades tend to require more holding time to generate the anticipated price move.
Day Trading Versus Swing Trading
The distinction between swing trading and day trading is the holding position time. Swing trading involves at least an overnight hold, whereas day trading closes out positions before the market close. Day trading positions are segmented to a single day only. Swing trading involves holding for several days to weeks. By holding overnight, the swing trader incurs the unpredictability of overnight risk resulting in gaps up or down against the position. By undertaking the overnight risk, swing trades are usually done with a smaller position size compared to day trading, which utilizes larger position sizes usually involving leverage through day trading margin. Swing trading can utilize the overnight margin of 50% if the account meets the pattern day trading (PDT) rule of maintaining at least $25,000 in account equity. Swing trading on margin can be extra risky in the event a margin call triggers.
http://www.investopedia.com/terms/s/swingtrad...z4NXH5xW8M
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Swing trading involves holding a position either long or short at least overnight and or up to several weeks. The goal is to capture a larger price move than is possible on an intra-day basis. Swing trading assumes a larger price range and price move and therefore requires careful position sizing to minimize downside risk. Swing trading can involve a mix of fundamental and technical analysis. Swing trades usually rely on larger time frame charts including the 15-minute, 60-minute, daily and weekly charts. Swing trades tend to require more holding time to generate the anticipated price move.
Day Trading Versus Swing Trading
The distinction between swing trading and day trading is the holding position time. Swing trading involves at least an overnight hold, whereas day trading closes out positions before the market close. Day trading positions are segmented to a single day only. Swing trading involves holding for several days to weeks. By holding overnight, the swing trader incurs the unpredictability of overnight risk resulting in gaps up or down against the position. By undertaking the overnight risk, swing trades are usually done with a smaller position size compared to day trading, which utilizes larger position sizes usually involving leverage through day trading margin. Swing trading can utilize the overnight margin of 50% if the account meets the pattern day trading (PDT) rule of maintaining at least $25,000 in account equity. Swing trading on margin can be extra risky in the event a margin call triggers.
http://www.investopedia.com/terms/s/swingtrad...z4NXH5xW8M
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