What is the typical leverage used in Swing Trading?

Four times the initial capital Two times the initial capital Ten times the initial capital Variable, depending on market conditions

What distinguishes Day Trading from Swing Trading in terms of security holding period?

Day Trading involves holding securities for multiple days, while Swing Trading focuses on intraday trades. Swing Trading involves holding securities for multiple days to weeks, while Day Trading involves holding securities for less than a day. Both Day Trading and Swing Trading involve holding securities for multiple days. The holding period is irrelevant in both Day Trading and Swing Trading.

Which trading style is generally considered to have a higher risk due to overnight holding risk?

Day Trading Swing Trading Both carry equal risk Risk depends solely on the trader's strategy

What is the primary tool used by Swing Traders to identify trading opportunities?

Fundamental analysis Technical analysis Insider information Market sentiment analysis

Which trading strategy aims to capitalize on small price changes and is commonly used by day traders?

Momentum Strategy Scalping Strategy Value Investing Strategy Growth Investing Strategy

Which trading style requires traders to be quick in executing trades to avoid potential losses?

Swing Trading Day Trading Both require equal speed Speed is irrelevant in trading

What is a key characteristic of the Marubozu candlestick pattern used in technical analysis?

It has long upper and lower shadows. It has a small body and long shadows. It has no shadows or wicks, indicating a strong bullish or bearish pattern. It represents a period of indecision in the market.

What is the basis of the Momentum Strategy in Day Trading?

Identifying undervalued stocks Capitalizing on short-term price fluctuations Exploiting market trends and news events Investing in long-term growth opportunities