There are three main styles of trading:
- Day trading
- Swing trading
- Position trading
Day trading is where you buy and sell during one trading session and end up the day with no positions.
Swing trading is holding a trade 1-5 days.
Position trading is holding trades for longer than 5 days though it usually means holding the position for weeks or months.
I don’t think position trading is good for creating income. Income should be money that you get in a constant stream.
You can make a lot of money position trading but most of the time you are holding the position for a long time. That means that you are not creating a constant stream. You can make a lot of money position trading but it will come in lumps not constant.
So that leaves day and swing trading.
Day trading usually means that you are staring at a screen all day long. In fact, day trading can be a tremendous way to make a living as a trading.
One big problem! It’s a job! You have to be there all day long so you don’t miss anything! I thought we were trying to avoid jobs.
Still, I day traded for a living for many years at big institutions. It can be a lot of fun but also a big grind. It's not for everyone. You need a certain type of personality to do it.
That leaves swing trading. This is where you hold positions for 1-5 days.
I like this technique a lot because I can do it just about every day and therefore make money on a relatively consistent basis. You get in today and usually get out in a couple of days.
Both day and swing trading don't usually generate big winners. That is left to position trading.
But what is wrong with making $100, $500, or even $1000 per day?
I love swing trading so much that I publish an advisory service called Smith's Stock Swing Trader.
Every day I reveal my actual trades that I'll be doing in my own account. About half the trades are in stocks and the other half in options.
I'll do the options if there is enough liquidity.
I post the trades and then also create a video where I explain the why and how behind the trades. I give exact instructions on what I'm doing so it is very easy to follow.
I update every trade every day so you know what I'm doing all the time.
You become a member of a private Facebook group when you join Smith's Stock Swing Trader.
You can start your swing trading today! Click here to claim your seat.
Good swing trading,