Definition of 'Swing Trading'

By Kin Talk on Friday, September 20, 2013 with 0 comments


This is a purely technical style of trading. This is a short-term strategy that looks to profit from gains in a particular asset in the span of one to four days. Technical analysts are essentially identifying assets with price momentum in the near term. Price trends and patterns are very important in swing trading. Fundamentals like the intrinsic value of a stock are basically ignored.

It’s always important to know who mostly uses a trading technique. In the case of swing trading, the majority of people who use it are day traders. This is because of the nature of swing trading which is used to spot opportunities in a very short time frame. Traders must act fast and so institutional investors prefer not to use this technique as they trade large quantities.
So this type of trading is very advantageous for individual traders who can capitalize on short-term price movements without getting competition from big money traders like large investment banks and hedge funds. 

Category: Technicals

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