Advanced Swing Trading for Option Trader

Swing traders analyze stock price patterns to anticipate when prices will rise, allowing them to buy low, and when prices will fall, enabling them to sell high. The goal of swing trading is to make money by buying a stock or option at a low price and selling it later at a higher price.

The 1% rule restricts Day Traders' risk to no more than 1% of their total account value on any given trade. Trading large positions with close stop-losses or small positions with stop-losses far from the entry price allows traders to risk 1% of their account, but it also involves the risk of daily volatility.