What’s the difference between penny stocks, day trading, & swing trading?
★ SUMMARY ★
First off, what are penny stocks? Penny stocks used to refer to stocks that were priced at less than 1$ per share. Now, with inflation and growth of the economy over the years, it typically refers to stocks that are less than $5 per share.
What is day trading? Day trading is not stock specific to price, whereas penny stocks are price related, and talking about a group of stocks, day trading is referring to the type of trading that you’re doing.
Day trading is when you hold the stock for less than one full trading day, which is less than six and half hours, because we have six and a half trading hours in a day, here in the US markets.
Whereas when you take a look at swing trading, swing trading is when you hold a stock for multiple days, weeks or even months.
There’s a deeper level beyond swing trading, you also have long term investing, and this is typically what warren buffet does. Long term investing is when you hold a stock or equity for multiple years or for decades into the future.
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