For the most part, you will be looking at blue-chip or large-cap stocks. While you can swing trade any stock, I like to stick to those for the most part. These stock's price will vary from a high to low and have a relatively low chance of completely crashing as a penny stock does.
How do you trade blue-chip stocks?
This can be done through share trading, where you buy and sell shares at spot price with the aim of profiting from the difference. Blue-chip stocks can also be traded through stock indices, such as the Dow Jones or S&P 500, which are often traded in the long-term as they provide steady returns and dividend payouts.
Can you day trade normal stocks?
You can day trade bonds, options, futures, commodities and currencies, but stocks are among the most popular securities for day traders — the market is big and active, and commissions are relatively low or nonexistent.
Can I buy and sell a stock in the same day?
Retail investors cannot buy and sell a stock on the same day any more than four times in a five business day period. This is known as the pattern day trader rule. Investors can avoid this rule by buying at the end of the day and selling the next day.
Swing trading is a trading strategy that focuses on profiting off changing trends in price action over relatively short timeframes. ... Traders who swing trade stocks find trading opportunities using a variety of technical indicators to identify patterns, trend direction and potential short-term changes in trend.
Can you make money day trading blue chip stocks?
Blue-chips are excellent companies. Most of them tend to pay dividends and buy back a lot of shares. They also have a substantial market share in their industries. However, for ordinary day traders, most of these companies are usually not the best to trade-in.