Swing stock trading is one option that works well for investors that want to grow their portfolio quickly with low risk stock trades. Unlike day trading where the investor is in and out of a stock in less than a day, swing trading allows the investor to locate a stock near the bottom of a swing trend, buy the stock and let it ride to near the top of the swing point. In the majority of trades, this is between 2 and 5 days.
One big advantage of swing stock trading over day trading is that you do not have to stay glued to your stock-screener awaiting the right time to sell. Another is that you will pay fewer commissions when swing trading stocks.
To look at it another way, the old “buy and hold” model of stock investing is where an investor buys a stock, holds it indefinitely, and rides the waves of increases and decreases, hoping that down the road the stock will end up higher than it was when it was bought. Swing stock trading allows the investor to ride the swings up and down, cashing out profits at each swing point, allowing the investor to then buy another stock at a swing low point and sell at its swing high point.
In today’s volatile market, a savvy investor can earn 10 to 20 times the returns as the buy and hold method. Investing in the stock market takes patience, knowledge and practice. It also involves risk. Regardless of your skill level in swing stock trading, there are lots of opportunities to make solid profits swing trading stocks if you know the correct methods and techniques.
Alex Barrett is a Stock Investor Adviser that writes and publishes articles about stock investing for today’s market with low risk, high return investments. More information is available at http://www.SmartStockMoves.com
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