Day Trading and Swing Trading

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When it comes down to it, there are three ways to trade and invest in the stock market.
Buy and hold. Day Trading. And Swing Trading.
Buy and hold is the way we used to invest – or more likely, the way your parents invested their money in olden times.
The good news is that buy and hold is perfect for “uninvolved” “disinterested” investors. The bad news is that buy and hold doesn’t work.
Buy and hold can trap your money during times when the market as a whole is going nowhere. Even worse, if the market really starts falling, buy and hold could result in serious investment losses 
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The other extreme is day trading. The world of day trading is a professional, Wall Street world with tons of expensive analysts and rooms full of even more expensive computers. And while the pros can make a lot of money day trading, this is a game the average trader or investor just can’t compete in.
That leaves swing trading – the sweet spot between buy and hold investing and day trading. Swing trading is ideal for independent traders because unlike day trading you don’t have to be glued to your screen all day making hundreds of trades.
With just a few trades a week, a few minutes a day, swing trading only puts your money to work when there are real opportunities in the market. The rest of the time your capital is safely in cash, earning interest and waiting for the next chance to strike.
The fact that swing trading means not just leaving your money sitting in the market all the time is worth repeating. The truth of the matter is that stocks never move in a straight line . Any one who’s been watching the stock market over the past few years knows that. But what you might not know is that this fact is what makes swing trading work. Swing trading allows you to trade stocks whether the market is moving up, moving down, or moving side to side.
In a market that’s moving up, swing trading will help you catch the big move when stocks that have pulled back rally into strength.
In a market that’s moving down, swing trading will help you catch the reversal when a stock has bounced too far too fast and is ripe for a retreat.
And in sideways markets, swing trading will help you do both – catching both the big moves and the reversals as the market moves back and forth in its range.

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