Hi everybody! I'm Rob Booker and I've taken over the stocks of Trade channel for the day. I'm just kidding I really didn't Tim would never let me do that Tim But I do have an important question for you and I need to play the role as as interviewer on this question. Um, so we're both day. Traders We have a lot of experience with that years of experience.

but the fact of the matter is, it's not convenient for everybody. In fact, I would say it's probably not convenient for most. Traders Yeah, um, what do you say to those people and what do you think about swing trading? I Don't know if I've ever even heard you state an opinion about what you think about swing trading? What is it? What do you think about it? So I'm a huge, huge huge fan of Swing trading. Just kind of to get some parameters out, you know I know most of your new Traders new to the channel.

So when we talk about day trading, okay, the idea is that you're in and out of the stock that same day. sometimes hours, sometimes minutes, sometimes seconds. Okay, and that's awesome If you can be like sit there at the computer 12 hours a day like Rob and I do okay because you can watch your positions. you can manage your positions.

You you don't end up, you know, magnifying a loss simply because you're in the bathroom. Okay, now it's a great thing because when you're talking day trading, these are stocks that move 20 30, you know, 300 000. A few weeks ago Ahi went up a thousand percent before like 11 A.M Okay, okay, that's great, but it also pulled back like eighty percent two hours later so it's very difficult to time these things. now.

what's great about Swing Trading? I Always think of a Venn diagram and the Venn diagram is volatility and safety and what that that intersection is Swing trading. So we try and Target these stocks that still have big moves but don't you know it's not 200 up, 80 down. Okay yeah, so the goal is you could make day trade like gains in a few days or weeks and not have to be and or maybe just unable to be sit there at that computer all day off. So a friend of mine Jay and I don't know if we'll have a quote but I've got a quote from him.

Um, he just wrote me two days ago and he said he's a dentist. Yep, I hope he's a dentist now I Don't remember. listen I don't want my date listen I Don't want my dentist day trading. So like, like if basically like Drilling in my teeth and his positions are binging.

But he started with 1500 bucks. so day trading is not going to be. He's not gonna be able to take a trade every day 1500 bucks. So he started with swing trading.

He took the methods that he's learned from both of us in the Daily Income Trader system see other video linked up here, wherever. whatever. Um, he took those principles and he buys stocks one to three times a week and he holds them for a few days at a time. he's over the PDT now.

geez from So 1500 bucks. Yeah, and so um, obviously remember the PDT is 25 000. Yeah, so he's going from 15 to over 25. And that's swing trading.

So there's this myth I think oh I got a day trade if I'm going to build up my account I Think Actually, sometimes it's the opposite for some people because you know when, especially when you're new. like I'm sure you I mean I know it's been over 20 years, 17 years. For me. it's like when you're new it's very, very difficult to stick to that plan and stick to that loss.

It's like I feel like it's showing up for an NFL Sunday game every day. Yeah, like day trading. To me it it will wear you down like playing professional sports I just can't like sometimes I'm just not there. Yeah, but I got to sit in front of the computer and so I just think swing trading for a lot of reasons is possible.

We're not going to talk all about I know you've been working a lot on something behind the scenes AI related. Yeah and I think that that's going to be super awesome, but um what I like about it? Okay, once again, you do with a smaller account and you could take. you could take five ten trades a week because you're going to hold them overnight. Yeah, you're not subject to that pattern day trading.

Yeah, that's again those of you that maybe again you're new to trading the pattern day trader rule Your Heroes Talk about that. the PDT Okay, just really, really quick. We have a ton of videos. you can check it out more.

but if you have less than twenty five thousand dollars in your brokerage account, you only get three day trades. A rolling five day period. Okay, because that's what Nancy Pelosi thinks that you ought to have. I'm just kidding.

As always, right, the government's trying to protect you there. There may be no I'm a big Ronald Reagan fan, and there may no be no better manifestation of the nine most dangerous words in the dictionary than the PDT Rule And if you don't know the quote, quote the nine most Dangerous Words in the dictionary I'm from the government I'm and I'm here to help I think the PDT truly does the exact of what it's intended to do because now Traders hold they. They don't lose. They hold losers overnight because they're like I don't want to use my day trade so it's actually making your risk management worse.

Anyway, the point is, you can only do in and out the same stock the same day three times in a rolling five-day period. So a lot of people are like, well: I can't grow my account with a small account because I can't day trade it one day. What's great about swing trading pattern? Day trader friendly. You can be entering a position or even multiple positions, so what's great? Think about swing.

Trading Let's just talk a hypothetical. Okay. I Enter five swings today. Okay, and one's a loser.

Remember losers hold losers. winners hold winners. So let's say one's a loser and you're four. Others are winners.

Great. If you're up penny a share. maybe you're up a buck a share. You ditch that loser.

You use one day trade, but now you have four positions and then the next day and assuming all of those continue to. Trend You can actually manage multiple positions, and if you're only selling your losers, you're not using up your day trades. Yeah. I Just like this is the part that gets me.

It's like, right, holding losers overnight. Bad idea. That's not swing trading. That's swing losing.

That's bag holding. Yeah. But what you're saying is, if you identify a different class of stocks, it's not generally the same class of stocks that we'll look at for shorting or going long for day trading. There's this group of stocks and they hit this sweet spot.

and I've seen what you've been working, you've been working on and it's this sweet spot. It's a company that might have some promising technology. It might be losing money now, but on the cusp of making money it might have. It might have growing cash flow.

It might have a low float so it has the capability of going on a run. It might be a stock under twenty dollars, but more than two dollars a shot. still accessible to people with small accounts. And if you take that swing trade and it's closing near the highs of the day and yeah it's a bit gapping up are huge.

Yeah I Just love that and and like what's what's so let's talk about like a recent one. Rxrx is a great example breaking out today. so they got in. they got money from Nvidia Okay, Nvidia if you know you know, trillion dollar market cap it's up like a hundred and fifty dollars a share in like a month.

Okay, they invested money in RX RX for an AI related play. It's also at a 52-week breakout. Also, trading unusual volume that stock every day that it closes near the high, it gaps up the next day every single day. So that's kind of short-term swing trading.

but think about that if you can isolate setups that close strong and GAP up the next day, you can actually be basically day trading. But the fact is, you're selling the morning Gap up and you're you're in and out of Trades every day. But because of this dumb rule that's based on midnight the same time Nancy turns into a demon And and when the when the wine hits, you know so at the same time that she turns into a demon all of a sudden it resets. But the point is, you can sell that market morning Gap up and you're You're basically trading volatile stocks with big potential.

But you're not limited by the PDT and last point back to your dentist friend. These stocks that we target, they move big but not like Madness not absolute Madness So it's not like you're sitting there you know, drilling someone's teeth and you're in your assistance like hey, you're down 80 yeah on this day trade right? she might be like hey, you're down two percent. Maybe you want to sell right? you know? yeah I Just love it I Love it for those reasons. Um, the Nvidia thing reminds me of a story.

We'll have to cover this in another video sometime. I Had a friend who sold puts we can talk about another time got stuck in it. stuck in Nvidia At 195 a share dropped to under 130 a share. Most of us don't even think about that, but that was actually kind of recent and held on and a ton of his friends begged him to get out, begged him to close that trade and he said I'm swinging this I know I Like this company that guy is.

he is sitting on so much money right now. Yeah, it isn't like 480. it's just being a swing. Trader Yeah I'm just and believing in what he was doing and understanding the difference between a company that you hold and a company that you dump.

So yeah. so anyway that that being said, everyone hopefully you learned about the differences and like the big thing. that last point we'll wrap this up like what the big thing that people mistake and they don't like about swing trading is they don't know how to isolate those stocks that like the rap talked about. Yeah, there's that sweet spot of like two to twenty.

These are a lot of these. best ones are like they're ten dollars. they're 12, but they have a catalyst. You know there's there's a certain criteria.

There's 10 criteria that I have that I go over and all a lot of these webinars and if you're trading like Apple as much as I love Apple it's probably the greatest company in the history of mankind. You swing Apple and okay, it's like I'm up three percent in three months. But if you can isolate stocks that might be partnering with Apple. Okay, and they're like 12 bucks and maybe they're making some chip for the iPhone or something.

you've got that level of safety. But back to that Venn diagram. Yeah, you have the volatility that the apples just don't have. Yeah I Know we're out of time.

We're gonna have to have a conversation about scanning for swing tricks. Yes, we've talked about scanning for sure. This is the I think it's the hardest thing to scan for are stocks that you're willing to hold overnight and I know you've been working on this. Yep, so I'm softballing this.

Maybe we'll come back another time and talk about it. All right? Well thanks a lot Rob Hey man, Thanks! Thanks a lot guys. We'll see you next time. Thank you.