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What are the differences between swing and position trading?

Sarah Parker


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Hi, thank you for asking! 

There are many aspects that differentiate position from swing trading, with the most important one being the time period involved. Swing traders place their trades in a shorter period of time which usually spans from several days to a few weeks, while position traders are ready to wait for a longer period of time.

The second difference is the amount of profit involved as swing traders sell in a short amount of time and seek to capture a bulk of price change, which is usually not so large. p
Position traders, on the other hand, are ready to wait for their investment to gain a serious profit and only then sell it.

The third difference is the amount of research involved as swing traders rely usually only on technical analysis, while position traders use technical analysis, fundamental analysis, and keep close track of microeconomic, political, and other conditions, which may influence their investments 

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Swing Trading

 - Your expectation of getting desired returns or exit is in less than 3 months. 

- Analyzing Technical analysis and news events helps in anticipating the price movement.   

Position Trading

- You hold your position for more that 6 months. That means apart from dividends there is no other direct return. 

- Fundamental analysis, and growth story of the stock are key indicators in investing.


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