What is Swing Trading ?

Today we’re going to Discuss about What is Swing Trading & How it works ?

What is Swing Trading ?
Swing trading is a type of long-term trading strategy that involves holding for more than a day but usually not for more than a few weeks or a month. In some ways, swing trading sits in the middle between day trading and trend trading.

Swing traders typically try to take advantage of waves of volatility that take several days or weeks to play out. Swing traders can use a combination of technical and fundamental factors to formulate their trade ideas. Naturally, fundamental changes can take a long time to implement, and this is where fundamental analysis comes into play. However, chart patterns and technical indicators can also play a major part in swing trading strategies.

Swing trading might be the most convenient active trading strategy for beginners. A significant benefit of swing trading over day trading is that swing trades take longer to play out. Still, they’re short enough so that it’s not too hard to keep track of the trade.

This gives traders more time to think about their decisions. In most cases, they have enough time to react to how the trade is unfolding. With swing trading, decisions can be made with less haste and more wisdom. On the other hand, day trading often demands quick decisions and quick execution, which is not ideal for a beginner.