Swing is a fluctuation in the value of an asset, liability or an account over a short period of time [referred as Short Term Trading]. It is a short term trading strategy in which trader attempts to capture gains by holding a security for only a day to four days.
- Trader must act quickly
- Used at-home & Day Traders
- Large Institutions can not move in & out of positions quickly, but small trader can exploit short term stock movement
- Trader can use TECHNICAL ANALYSIS to do swing trading
- No worry about fundamentals but use price trends & patterns
- Subject to large draw downs
- Risk is less compared to long term trading, but more than scalping
Swing Traders are the traders, who engages in Short term strategy in prospecting changes in a security price caused by oscillations between its price being bid up by optimism & alternately being bid down by pessimism over a period of one day to four days.