Love to hear everyone's thoughts on a day trade that goes up a lot and you are in the money 5% or 10% in a day. Do you ever hold it to the next day? I feel like I should consider this like friday when the whole market is up. I suppose it might be a better idea to do it when your porfolio is doing well vs poorly?
for most, it is when they don't have a plan and baghold their day trade into multiple days and weeks and change it to their swing trade.
For a lot people, there is not a lot of difference. Typically when day trade does not do well, some leave it to swing trade. Or they would just take profit and call it a day. For me SOXL trade on Friday, it was any planned trade. If there was no reversal, I would take it as a long swing trade. But I'm 22% in the money now. I can just close it and wait for the next move. But most traders like to take profit, not loss.
Definition of an investment... "a trade gone bad"*---- the late, great Ed Hart. *meaning... a trade you should have stopped out but didn't. Now you're left with "hold and hope".
I think it's reasonable to swing a profitable trade 1 or 2 days each second treating it as a new trade which you have to decide whether it's still moving in the right direction or not.
I care less as long as my profit flows. I'm up 30% YTD and 232% from 2021-2022. Do not even need to work my butt off to chase all the day trades. I caught the falling knife on SOXL and that trade is already 22% in the money. Do not know if I'd be able to catch that day trade only. Several people kept posting, do not catch falling knife. LOL....
Please DON'T treat your day trading position as a swing or short term position in bear market while price goes against your trade. You're likely going to blow your account fast and having hard time to sleep at night while your position is still on.
Certain trades like GME, AMC, etc are clearly day trades since you know the fundamentals are not there and you do not want to hold it for one year or more. But if you hold Chase Bank or Goldman stocks and you are down 10%, do you sell to take a loss? You have to make a decision on what you want to do. Certain people do day trading only. Other people do swing trading better. Different styles. Most of the hedge funds do not do much day trade. Futures traders trade more often though due to the leverage.