Swing Trading
Swing trading is a style of trading that attempts to capture gains in a stock or other security within a short period of time, usually within one to four days. Swing traders use technical analysis to identify stocks that are showing short-term price momentum. They then hold the stock for a short period of time, usually until the price momentum reverses, and then sell the stock. Swing traders often use a combination of technical indicators, such as moving averages, to identify stocks that are likely to move in a certain direction.
History of Swing Trading
Swing trading has been around for many years, but it has become increasingly popular in recent years due to the availability of online trading platforms and the ability to quickly access market data. Swing trading is a form of active trading, which means that traders are actively monitoring the markets and looking for opportunities to buy and sell stocks. Swing traders typically use technical analysis to identify stocks that are showing short-term price momentum, and then hold the stock for a short period of time until the price momentum reverses.
Comparison of Swing Trading and Day Trading
| Swing Trading | Day Trading |
|---|---|
| Holding period: 1-4 days | Holding period: 1 day |
| Focus on technical analysis | Focus on fundamental analysis |
| Less capital required | More capital required |
| Less risk | More risk |
Summary
Swing trading is a style of trading that attempts to capture gains in a stock or other security within a short period of time, usually within one to four days. Swing traders use technical analysis to identify stocks that are showing short-term price momentum, and then hold the stock for a short period of time until the price momentum reverses. Swing trading is a form of active trading, which means that traders are actively monitoring the markets and looking for opportunities to buy and sell stocks. For more information about swing trading, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Day Trading
- Technical Analysis
- Moving Averages
- Fundamental Analysis
- Options Trading
- Scalping
- Position Trading
- Momentum Trading
- Trend Trading
- Arbitrage Trading
