What Is Swing Trading? Meaning & Example
Definition
Swing trading aims to capture price moves that last several days to a few weeks. It sits between day trading and long-term investing.
Related terms
Day trading means buying and selling within the same trading day, closing all positions before the session ends. It is fast-paced and most beginners find it very difficult.
TrendA trend is the general direction in which a price is moving over time. Uptrends make higher highs and higher lows, while downtrends make lower highs and lower lows.
SupportSupport is a price area where buying interest has tended to stop declines. Traders watch support levels for potential bounces or breakdowns.
What is Swing Trading?
Swing trading aims to capture price moves that last several days to a few weeks. It sits between day trading and long-term investing.
Can you give an example of Swing Trading?
Buying a stock as it bounces off support and selling it eight days later near resistance is a swing trade.