WHAT IS SWING TRADING?
Technically speaking, holding a stock for longer than a single day is a swing trade. Swing trading sits in the middle of the continuum between day trading to trend trading.
TO TRADE OR TO HOLD?
Stocks are a risky asset and trading/investing in risky assets must be done with thought and deliberation. Stock selection is possibly one of the most important components to being a successful trader, making consistent profits. Before you trade a stock you should ask why this stock?
TRADING OR INVESTING?
The other day I was asked: what is the difference between swing trading and investing? The short answer is: the time horizon. When you invest, you are holding stocks for a longer time period, usually several years. You speculate that “Your share” will increase exponentially in value over the years. As a result, you expect a high return. Dividend payments are often taken in to consideration when investing as they add to the return.