Swing trading is a trading technique that attempts to capture single swing (or "one move") in a stock (or any financial instrument) over a period of a few days to few weeks. Swing traders primarily use technical analysis to look for trading opportunities.
Swing trading involves holding a position either long or short for more than one trading session, but usually not longer than several weeks or a couple months. This is a general time frame, as some trades may last longer than a couple of months, yet the trader may still consider them swing trades.
Swing traders will often look for opportunities on the daily charts, and may watch 1-hour or 15-minute charts to find precise entry and stop loss points.Some Simple Swing Trading Strategies are
Requires less time to trade than day trading.
Maximizes short-term profit potential by capturing the bulk of market swings.
Simplifying the trading process, as need to make trades based exclusively on technical analysis.
Profit from OVERNIGHT GAPS.
Traders can avoid larger losses unlike long term investors.
Trade positions are subject to overnight and weekend market risk.
Abrupt market reversals can result in substantial losses.
Swing traders often miss longer-term trends in favor of short-term market moves.
Need more capital as compare to day trading.