swing trading strategies

Swing Trading Strategies

What is Swing Trading?

Swing trading is one type of trading where  you hold positions in equitys (stocks) or any other investment over a longer period of time that can range from 1 day to a few weeks or more.  Swing trading strategies  can have  similarities to daytrading but there are also some major differences. Day traders do not generally hold a position overnight or longer. It is helpful because you are not exposed to events that happen after the market closes. These events can either help or hurt you tremendously because there is  both opportunity for profit and risk of loss.

When day traders begin their day, there is almost always a stock or other financial vehicle in play to take a quick scalp trade. With swing trading, traders need to do their research and be a little more selective. Often times many  days will go by where the risk to reward in taking a swing trade is not as blatant. However, when the opportunities present themselves, a trader can seriously profit by holding overnight.

Like any type of trading, you need a solid trade plan, education, practice and experience. Practice paper trading and with small size first. Never put your real money at risk until you are extremely confident in your skills.

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