Investing Strategies

Swing Trading


Another trading strategy is called swing trading. It differs from day trading because traders are holding their positions over a longer period of time. Typically for between a few days and several months.


Swing trading is still a high-risk investment strategy but is safer than day trading as investors give more time for their investments to perform. Generally, the longer that investments are held, the better.


Swing trading can be thought of in the traditional way that people think about the stock market, it involves buying low and selling high. Investors usually use ‘stop loss’ to avoid making a loss on their trade.


Swing traders often use technical analysis, just like day traders, but also use fundamental analysis, unlike day traders. They are trying to take advantage of anomalies in stock prices or of short term news.

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