Many of us have heard about Intraday Trading. It involves buying or short selling a highly liquid scrip near intraday supports or resistance and booking profits if they are in 1-1.5% gains.Trades should be squared off intraday with no overnight positions.
Another set of traders,known as scalpers/jobbers, have a short trading period, where they buy or short huge quantity of a particular high liquid scrip and book profits within a couple of ticks.
Both these trading strategies involve high concentration ,close monitoring of stock moves & very high risk apetite(due to heavy volumes).
A better approach to trade is Swing Trading.
Swing trading is the most efficient approach to make money in the stock market..according to me.
Swing trading sits in the middle of the continuum between day trading or scalping and trend following.
Swing traders hold a particular stock for a period of time, generally between a few days and two or three weeks.
It doesnt require close monitoring of stock movements nor heavy volumes to be traded every couple of minutes.
In addition, when compared to day trading, swing trading is a far more efficient trading style, as the cost of doing business is substantially lower due to commissions not being generated on a daily basis. Swing traders also tend to participate in a larger portion of price moves.
Sunday, May 25, 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment