Anonymous asked in Business & FinanceInvesting · 9 months ago

Any swing traders here?

Looking for some advice. I've been day trading for a few months now and it's just too emotional. I'll be up 400+ within a few minutes.. then the next day I'll take a huge loss and be depressed.

Where as my long term buys like PG and HON have never let me down..

But swing trading interests me. Just not sure where to start. I want to get away from margin as I've taken some big losses. 

Looking to trade UGAZ, as supply drops due to cold weather and demand increases, it should climb. 

It just seems more calculated, and day trading just makes me feel super greedy and positions are based on my emotions, where as swinging I can research on my own time, get up when i feel like it..

Where should I start? Should I look into stocks at 52 week lows? Or just follow buy signals, biggest losers of the day? Looking for 1 week to 2 month swings


3 Answers

  • 9 months ago

    I don't have much experience with swing trading, but I have enough experience to offer some advice/thoughts.

    First of all, your experience with day trading is common. Most people who try day trading lose money

    You want to get away from using margin. Margin is a form of leverage. Leverage makes both your profits and your losses larger. With margin you can get a maximum of 2 to 1 leverage.

    You are now looking at UGAZ which is leveraged at 3 to 1. Your profits or losses will occur even faster.

    UGAZ is based on futures contracts which are more difficult for most people to predict, particularly people not working in the industry.

    If you are correct that gas prices should rise that will be common knowledge and already figured into the price.

    Any time you are planning to do short term trading remember that there is an old saying "The trend is your friend." Based on that saying you would be better off buying stocks that are big gainers or at 52 week highs.

    I never traded based on technical analysis so I have no opinion about using buy signals. I have always used fundamental analysis instead.

    You say you have had success with a buy and hold strategy on large cap solid companies. You might want to stick with a successful strategy instead of trying something new.

    Source(s): Over 40 years experience in the stock market
    • Commenter avatarLogin to reply the answers
  • 9 months ago

    Day trading is not investing, it is gambling.

    • Commenter avatarLogin to reply the answers
  • 9 months ago

    If your taking big losses on it, why do it?

    • Commenter avatarLogin to reply the answers
Still have questions? Get your answers by asking now.