TRADING STYLE - SWING TRADING
Swing traders operate in a longer market time frame than scalpers do. Instead of looking for teenies over the next several minutes, these traders look moves of several points over the span of one- to five days. This trading style usually focuses on technical information, so at least a working knowledge of technical analysis is necessary. You don't have to be a full-blown technician, you simply need to be able to identify short-term uptrends and downtrends and other technical basics. But swing traders may also trade on breaking news events such as earnings releases, stock splits, and up- or downgrades that could present opportunities for short-term profits.
Swing trading typically appeals to the more conservative individual who wants short-term profits but doesn't quite have the nerves (or, perhaps, the bank account) to operate as a scalper. It can be done on a part-time basis because you don't have to monitor your stock every second that your position is open. And you can get by with a smaller amount of capital (and also smaller trades) because you're looking for multiple-point profits instead of teenies. However, the overall risk is greater because you're holding market positions overnight, and sometimes over the weekend.
