Swing Trading is a style of trading in which the trader holds positions for anywhere from a day or two to a couple of weeks. The approach is to identify and take advantage of swings in the market typically on a daily chart. Swing traders will attempt to identify pullbacks in a trending market. They take a positions anticipating a short term continuation of the trend over the next few days or weeks.
A swing trader can identify entries based on their criteria during non-trading hours and enter pending orders. This places stop or limit orders to enter a trade along with a stop loss and target. This eliminates the need to be present at the computer when the trade is triggered. This makes Swing Trading a preferred trading style for many people. who cannot watch the markets throughout the day but want to be active in the markets.
A swing trader has much more time than a scalper or intraday trader to analyze a potential trade against his or her criteria before entering an order. This is beneficial to the new trader who is learning to trust his or her ability to following the plan.
If you don’t mind holding positions overnight or over weekends. If you prefer to analyze your trades rather than making split second decisions, you can’t watch the charts during the day, are prone to revenge or over trading, swing trading might be a style that fits you. Explore the Trainers/Coaches section to find a swing trading style that appeals to you.