Swing Trading

Swing trading is a speculative strategy that aims to profit from short-term market price movements, or "swings", lasting from a day to a few months. Swing traders use technical analysis to identify trading opportunities and determine entry and exit points. They may go long or short to capture price swings in either direction, or between support and resistance levels.

 

Key points about swing trading: 

Goals: Capitalize on price changes in any tradable security, including stocks, commodities, currencies, and cryptocurrencies.

 

Methods: Use daily charts to choose entry and exit points, and may use shorter time frame charts.

 

Risk management: Use stop loss orders and other disciplined techniques to preserve capital and manage risk. 

 

Potential: Can be profitable if losses are kept low, but can also be high-risk. 

 

Disadvantages: Swing trades can take time to materialize, and capital is tied up in a single position for a longer period.