Swing trading is an attempt to capture gains in an asset over a few days to several weeks. Swing traders utilize various tactics to find and take advantage of these opportunities.

Day-Trading Margin Requirements: Know the Rules

Table of Contents
Expand What Is Swing Trading?
Understanding Swing Trading
Pros and Cons
Day Trading vs. Swing Trading
Swing Trading Tactics
Real-World Example
Swing trading is a style of trading that attempts to capture short- to medium-term gains in a stock (or any financial instrument) over a period of a few days to several weeks. Swing trading is one of the most popular forms of active trading, where traders look for intermediate-term opportunities using various forms of technical analysis. Swing traders can take profits utilizing an established risk/reward ratio based on a stop loss and profit target, or they can take profits or losses based on a technical indicator or price action movements.
1:29 Swing trading exposes a trader to overnight and weekend risk, where the price could gap and open the following session at a substantially different price.

Swing Trading

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Swing Trading