Swing traders, Financial Management

Swing Traders

Swing trading is more or less similar to day trading except that swing traders will normally have a longer holding period during a working day. Swing traders also attempt to predict and trade a stock based on a particular trend it is following from past trading days. But unlike day traders they will hold stocks for more than one day, if necessary, to give the stock price some time to move.

Although swing traders have the opportunity to earn higher returns than day traders, primarily due to the extended hours they work on trading, they also have greater risks. Where day traders liquidate their stock at the end of the day, swing traders take on overnight risk. Although the term, ‘overnight risk' doesn't sound too scary, many of the overnight risks assumed by swing traders are quite substantial. For example, developing news events and earnings warnings that are not announced until trading hours could have huge impact on the opening prices of stocks on the next trading day.

Posted Date: 9/10/2012 6:08:29 AM | Location : United States







Related Discussions:- Swing traders, Assignment Help, Ask Question on Swing traders, Get Answer, Expert's Help, Swing traders Discussions

Write discussion on Swing traders
Your posts are moderated
Related Questions
QUESTION The Managing Director of your firm is thinking aloud about an appropriate gearing level for the company: "The consultants I spoke to yesterday explained that some t

Question : (a) A company wants to purchase a plant for its expanding operations. The desired plant is available at Rs 300,000 in cash. Alternatively, the company has the option

What the term objectives denotes- financial management It must be noted at the outset that term 'objective' is used in the sense of a goal or decision criterion for three decis

Define why we measure a project’s risk as the change in the CV. We calculate a project’s risk as the change in the coefficient of variation since this focuses on the change in

Current Assets:- Stock of Raw-Materials :- [(Cost of yearly consumption Of raw material)*{ (Average Inventory holding period (weeks/months))}/(52 weeks / 12 months)]=

Peak Inc. needs to order Canadian raw materials to use in its production process. The Canadian exporter typically invoices Peak in Canadian dollars. Assume that the current exchang

Q. Merits of net present value method? Merits of NPV method:- (i) Time value of funds is taken into consideration: - For the reason that this method takes into account the t

Stream of Expected Returns Investment returns can take many forms. An investor must consider all these forms to evaluate an investment option accurately. A brief description of

What are the misconceptions about Financial Management?

discuss the applicability operating cycle considering broilers in uganda?