What is "swing trading" and how does it work?

Typically swing trading stands for taking a trade and closing it off after some days.

Neither an intraday nor a long term trade can be called swing trading.

Let me share my views on swing trade. Its a short term trade which can last betwen 1 day to say a week/weeks targetting to capture price swings. Intra day traders try to capture price swings in a short span of few minutes or hours, likewise swing traders try to capture price swings in a few days. The trading style of intraday traders is similar to swing traders. Just the time range is wider for swing traders. Hence we can also call swing traders as intra week or intra forthnight traders :slight_smile:

Now coming to Chandu’s point that this is same a normal trading or short term positional trading. Well yes in terms of duration but no in terms of mind set. A positional trader - short or long term, will trade with a view and keep stop losses based on his apetite for risk and will not exit till his view is defeated or stop loss has triggered. Like suppose your view is that markets will shoot up is MODI wins. Hence you buy NIFTY futures on the eve of elections expecting movement after exit polls. Now if the exit polls are in your favor but the market doesn’t move, then you will exit or maybe wait for election results to see some action. But a swing trader will enter after exit polls if there is a movement and get out before the direction changes and will be happy with small profits.

So as per my understanding a swing trader is usally trading on technical analysis or sometimes fundamentals but only to capture price movements/swings. He will avoid having a view and will set stop losses too at technical levels. … Hope I’m right :slight_smile:

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I don’t think so taking a trade and closing after some days is swing trade, Perhaps we can call as normal trade also isn’t it??

Term ‘Trading’ can be used as a general one. To give more clarity on duration of the trade classifications are done, like scalping, intraday, swing and long term.
The trade position is still ‘ON’, irrespective of the price swings. May be this is the reason the term is ‘Swing’ trading.

Swing trading is a trading strategy used by traders to gain profit in share market by holding a share from overnight to several weeks. In this, traders use technical analyses to determine price trend and patterns. Swing trading is kind of short-term trading approach used at the time of trading stocks and other securities. Investors can look for useful swing trading tips, stock tips and intraday tips to clear concept of different trading strategies just like swing trading.

@meliwakirti You could have just given the wesbite link directly instead :wink:

@saiography This one is also written by me…

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According to me, Swing Trading is a short-term trading method that can be used when trading stocks and options. Whereas Day Trading positions last less than one day, Swing Trading positions typically last two to six days, but may last as long as two weeks.