Below are 4 of my rules for swing trading based on the risks of holding securities overnight or for an extended period of time: Rule #1: avoid holding positions on a stock through an earnings report. Rule #2: avoid holding positions through known events. (For example – the date a pharmaceutical company is scheduled to release a trial result.) Rule #3: research the company you are investing in and determine if the basic fundamentals support your forecast for the stock price. Rule #4: follow your risk to reward plan and do not over-invest in one position.
