Swing trading is a technique in which you buy a stock to hold overnight for up to a few weeks. End of day trading works especially well if you’re going to hold a stock overnight.
Another great part of swing trading is allowing traders under the PDT rule to get around it. The PDT rule limits the amount of day trades you’re allowed if your trading account is under $25,000.
Any trading accounts under $25,000 get four-day trades in a business week. As a result, you can be limited in your trading. However, swing trading allows you to bypass that rule by holding overnight.
If you find a good setup, you can buy during the end of day trading and sell the following day. As a result, there’s a lot of potential in getting a better entry than people who enter the stock the following day.
It’s important to remember that news can affect the direction of a stock overnight. As a result, pay attention to earnings dates and check for any potential news. That is a risk with swing trading. You are doing it the right way as long as you have a good entry and set support and resistance alerts.
If you’re new to trading, open a Thinkorswim paper trading account with TD Ameritrade. Then you can practice swing trading power hour stocks and see how the end of day trading works for you.