Swing trading vs. day trading Q:

What’s the difference between swing trading and day trading? — M.T., Walnut Creek

Both are short-term trading practices where folks aim to profit from changes, or swings, in a security’s value over a short period. As you might guess, a day trader will buy, say, a certain stock and hold it for only a few minutes or hours, selling it by the end of the day. A swing trader is a little more patient, selling within a few weeks, at most.

Both strategies will often employ “technical analysis,” which involves looking for promising patterns in graphs of stock prices without much regard for the underlying businesses. Swing traders may incorporate some “fundamental analysis,” too, assessing the financial health, competitive strengths, growth prospects and more of the companies whose stocks they’re trading.

In general, we strongly recommend favoring fundamental analysis and investing in stocks for years if not decades. Short-term trading can seem more like speculating or gambling than actual investing. The Securities and Exchange Commission has warned, “Day trading is extremely risky and can result in substantial financial losses in a very short period of time.”

A:Q:

What are some unusual or amusing ticker symbols? — K.B., Potomac, Md.

A:

There are plenty! For example: Yum! Brands (YUM), the parent of KFC, Taco Bell and Pizza Hut; National Beverage (FIZZ); Gibraltar Industries (ROCK); Petco Health and Wellness (WOOF); Molson Coors Beverage (TAP); Southwest Airlines (LUV); 3M (MMM); Harleydavidson (HOG); Olympic Steel (ZEUS); Heineken (HEINY); Ferrari N.V. (RACE); and Viper Energy (VNOM). Before they were bought out, eyewear maker Oakley sported the symbol OO, mattress maker Sealy had ZZ and auction house Sotheby’s had BID.

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