What is Swing Trading?
Swing trading is a trading strategy that focuses on capturing short- to medium-term gains in a stock or any financial instrument over a period of a few days to several weeks. Traders rely on technical analysis to identify trading opportunities. The goal is to buy low and sell high within this timeframe, capitalizing on market swings.
Key Points:
- Duration: Trades last from a few days to weeks.
- Objective: Capture price swings for profit.
- Analysis: Heavy reliance on technical analysis.
- Risk: Moderate, requires active monitoring.
- Flexibility: Suitable for part-time traders.