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What is swing trading?


Fernando Cortez

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Let me explain that in concise points. 

- In swing trading you trade the momentum on higher frames (generally, 1 hr - 1 day frame).  

- You try to caught and trade the range bound moves between support and resistant levels. 

- Capital needed is higher, as no or very less margin is provide by the brokers. 

- One trade cycle takes more than a week to 3 months. 

- Swing traders primarily rely on Technical Analysis, while also considering confirmation from news, volumes, and fundamental changes.

To learn more, you can checkout this guide: https://www.asktraders.com/learn-to-trade/trading-strategies/swing-trading/

Example: This is Ford ($F) trading in swing support and resistance levels.

H5ezG7Lm 

Edited by Rishabh Tyagi
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Hi, thank you for your question! 

Swing trade is a trading strategy that aims to capture short to medium-term gains in a short period of time (which usually spans from a couple of days to a few weeks). Swing trading relies mostly on technical analysis in order to register trading opportunities that match this strategy.

The goal of swing trading is to capture as much of a price rise in a given time period and capitalize on it. In order to do this, they seek primarily volatile stocks that have a wide range of movement, still, some traders may pick out more stable stocks with a shorter range of movement. 

The key strategy is to identify when the price will move in the desired direction and predict how long it will move that way and sell it when it reaches its peak. Of course, this is really hard, but with experience and required knowledge, it gets easier and easier.
 

 

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Hi, thank you for asking! 

Swing trading is short term position holding, which is spanning from a couple of days to a few weeks. In this short time, the trick is to capture the peak profit and value of the position held, sell it, and obtain profit. 

Then moving onto the next opportunity trader buys a position that is affordable to him, and using technical analysis predicts if he will be able to turn a profit, and how big of a profit it will be. 

It is important to be active during swing trading, closely following market movements, and acting according to it. This is one of the most interesting and engaging forms of trading, as it requires swift action and keen attention to the market situation.
 

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Hello, thank you for asking! 

Swing trading is a trading tactic where traders usually hold a position for longer than a day. Swing traders are holding positions from several days to a few weeks with the goal of making a reasonable profit.

Swing traders represent a mixture of day traders and trend traders. Day traders keep the position from a few seconds to several hours, but never longer than a day. Trend traders examine long term trends and keep closer track of stock price and value movement. 
 

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Swing trading is a style of trading in the financial markets, such as stocks, currencies (forex), commodities, or cryptocurrencies. It involves attempting to capture short to medium-term price movements within a specific financial instrument. Swing traders aim to profit from price "swings" or fluctuations that can occur over a period of a few days to several weeks.

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