What is swing trading?

    Quick Answer

    Swing trading is a trading style where positions are held for 2-14 days to capture short-to-medium term price movements.

    Detailed Explanation

    Swing trading is a trading approach that aims to capture gains in a stock, cryptocurrency, or other asset over a period of a few days to several weeks. Swing traders primarily use technical analysis to look for trading opportunities, though they may also use fundamental analysis. This style sits between day trading (same-day) and position trading (months to years).

    Key Points

    • 1Typical holding period: 2-14 days
    • 2Relies heavily on technical analysis
    • 3Less time-intensive than day trading
    • 4Aims to capture 'swings' in price
    • 5Works in trending and ranging markets

    Example

    A swing trader buys AAPL at $175 support, holds for 8 days, and sells at $185 resistance for a $10 profit per share.

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