Swing vs Day Trading: A Comparison: $CENN +27.18% & $WKHS +21.34%
Analyzing Trading Strategies: Medium Volatility Swing Trading vs. Long Bias Day Trading
In the complex world of stock trading, every investor or trader must establish a strategy tailored to their risk tolerance, investment goals, and overall market outlook. Two strategies that have gained considerable popularity among active traders are Swing Trading in Medium Volatility Stocks and Long Bias Day Trading in Popular Stocks. Both strategies make use of Technical Analysis (TA) and Fundamental Analysis (FA) but they differ in their approach, investment duration, and the types of stocks they target.
Swing Trading: Medium Volatility Stocks for Active Trading
Swing trading is a strategy that seeks to capture gains in a stock within an overnight hold to several weeks. It focuses on technical analysis to find stocks with short-term price momentum. Swing traders aim to catch a 'swing' within the cycle of stock price fluctuations, thus they typically choose medium volatility stocks.
The medium volatility stocks come with a balanced level of risk and return, as they show consistent fluctuations without extreme variations. They are suitable for traders who are looking for more than just minor daily price movements, offering them the potential to realize significant gains over several days or weeks.
The blend of TA and FA in this strategy offers the best of both worlds. TA helps to identify entry and exit points, while FA assists in filtering stocks with strong fundamentals. The combination helps to mitigate the effect of emotional biases and market noise, providing a more structured approach to trading.
Day Trading: Popular Stocks with a Long Bias Strategy
On the other hand, Day Trading with a Long Bias Strategy is an approach where traders initiate and close their positions within a single trading day. This strategy targets popular stocks that frequently appear in the news, and have high trading volumes, providing ample liquidity for traders.
A long bias means that the trader's general outlook is bullish, anticipating that the price of their chosen stocks will rise. They use TA to identify patterns indicating an upward price movement, and FA to ensure the company behind the stock has solid financials and growth prospects.
Day traders favor popular stocks because they are driven by market sentiment, news, and significant events which can lead to substantial price movements within a day. By focusing on popular stocks, day traders can take advantage of these rapid price changes to make profits.
TA and FA play a crucial role in this strategy. TA aids in predicting price movements and determining the optimal points to enter and exit trades. Simultaneously, FA allows the trader to ensure that the popular stock they're trading is backed by strong fundamentals, aligning with the long bias.
Summary:
Both Swing Trading in Medium Volatility Stocks and Long Bias Day Trading in Popular Stocks are effective strategies that cater to active traders with different time horizons and risk-return expectations. While swing trading focuses on capitalizing on medium-term price fluctuations, day trading takes advantage of the daily price movements in popular stocks. The choice between the two would depend on the individual trader's preferences, available time for trading, and their appetite for trading frequency and duration.
CENN in upward trend: price rose above 50-day moving average on October 25, 2024
CENN moved above its 50-day moving average on October 25, 2024 date and that indicates a change from a downward trend to an upward trend. In of 33 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 04, 2024. You may want to consider a long position or call options on CENN as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where CENN advanced for three days, in of 185 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 71 cases where CENN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CENN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CENN broke above its upper Bollinger Band on October 24, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.327) is normal, around the industry mean (6.019). P/E Ratio (0.000) is within average values for comparable stocks, (18.031). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (5.553). CENN has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.043). P/S Ratio (2.829) is also within normal values, averaging (76.807).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CENN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CENN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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Fundamental Analysis Ratings
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General Information
a manufacturer of intimate apparel and swimwear
Industry MotorVehicles