13 June 2014

SWING TRADING IN INDIAN STOCK MARKET

Ever wondered what is swing trading? This is a type of trading in which a stock is held for a certain period of time. The period might range from a few days to 3 to 4 weeks. This depends up on the weekly or monthly fluctuations in price of the stocks. The traders must be quick in reacting while monitoring short-term variations in the market. This trade lies somewhere between the trend trading and day trading.
About trend trader
Traders employing this type of trading stress mostly on price patterns and short-term momentum rather than on the fundamental value of the stocks. Trend trader analyses the fundamental trend of the stock and it might be that he may also hold the stocks for weeks or even months. They are not the one who would wait for the prices to reach rock bottom. They also do not wait for the price to rise while selling them. Instead they would capitalize on the short-term movements in the market. You should remember that persons who are involved in this type of trading usually do not face big competition from traders.
Pick the right stocks Persons who are willing to seek success in the Indian stock market must be able to pick the right stocks. Now you might be wondering what is meant by right stock, isn’t it? Well when we say right stocks, we mean the ones that belong to blue-chip companies. These stocks are supposed to swing between extreme values. A swing trader normally follows a stock for a number of days during the upward swing. Suppose there is a downward swing, then the trader switches over to the stocks which are rising. If the markets are stable, then there is a good chance that swing traders are profitable.
You should always choose the right stock broker when you think of investing in the stock market. So, you should also learn more about swing trading if you wish to know the functioning of the market and also its different types of trading. So get a good broker and become tensed free but do not forget the risk as well in the market.
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