Swing traders, Financial Management

Assignment Help:

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.


Related Discussions:- Swing traders

Benefits of interest rate swaps, Q. Benefits of Interest rate swaps? I...

Q. Benefits of Interest rate swaps? Interest rate swaps may provide several benefits to companies including: - The ability to get finance at a cheaper cost than would be p

Treasury bonds or t-bonds or the long bond, Treasury bonds are the bo...

Treasury bonds are the bonds issued with maturities greater than 10 years. However, these are commonly issued with a maturity of 30 years. Like T-notes, these bon

Forecasting yield volatility, There are several methods available to ...

There are several methods available to forecast yield volatility. But before that, let us look into the calculation of forecasted standard deviation. Assume th

Calculations and graphing cumulative returns, Monthly Returns: You now nee...

Monthly Returns: You now need to calculate the monthly "periodic" returns for all three stocks and the S&P index.  Adapting the holding period return formula (End - Beg) / Beg for

Example of a budget, Group Activity An example of a budget can be seen ...

Group Activity An example of a budget can be seen below. After viewing the budget, identify the possible reasons for the variations. Budget - Jul / Dec 200X

What do you meant by negative externalities, Question 1: i) Is ther...

Question 1: i) Is there a stable and inverse link between unemployment and inflation? ii) The government announces that expansionary policies will be enacted in a view

Aggressive approach of financial management, Q. Aggressive Approach of fina...

Q. Aggressive Approach of financial management? A -firm may be aggressive in financing its assets. An aggressive policy is said to be followed by the firm when it uses short-te

What is the benefits of divestment, What is the Benefits of divestment ...

What is the Benefits of divestment ¸ Releases cash tied up to finance more promising opportunities. ¸ Reduces diversification and complexity of a group in case of a demerger

Illustrate report on net present value, Q. Illustrate report on net present...

Q. Illustrate report on net present value? The NPV of a project is a positive $56000. This point to that using our cost of capital 10% as our discount rate the project is we

Uses of index numbers, Uses of Index Numbers 1. Establishes trends ...

Uses of Index Numbers 1. Establishes trends Index numbers when analyzed reveal a general trend of the phenomenon under study. The available figures for inflation based

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd