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In this article I am going to give you an introduction to a great stock market investment strategy. This stock market investment strategy is – swing trading. This is the science of profiting from securities short-term price movements over a period of a few days to a few weeks to one or two months at the very most.
Swing traders can be individuals or organizations such as hedge funds. They will wait for low risk opportunities and then attempt to take the lion’s share of a significant up or down move. Swing trading is different from day trading or buy and hold investing. Those types of investors approach the markets differently. You must understand these differences so that you don’t focus on aspects that are only applicable to long term investors.
Once you have mastered this stock investment strategy you will be able to.
· Generate an income stream
· Time your buys and sells and hold a basket of positions to diversify your risk
· Profit from price declines through shorting
Starting in swing trading can be difficult. Before you begin you need to think about what kind of swing trader you want to be. First you need to determine how much time you want to commit to swing trading. You will also need to decide weather you are going to trade as your primary means of income. If this is your intention you will need to spend several months or years gaining experience and knowledge. You will also need to devote several hours a day to trading, spend time researching possible trades and be able to handle pressure well.
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Source by Albert Fontana