Free Stock Market Education, a 10 module course, including video and eBooks
PRO Stock Market Training.  The Liberated Stock Trader Book + 16 Hours of Video Education - for PC, Mac, Ipad, Iphone, Android
Take a look at our Stock Market Trading Coaching and Mentoring Services
swing trading

Swing trading focuses on trying to make a profit from stocks that are about to make a short term change of direction.  Swing trading is short term but not on the scale of day traders, typically 1 to 5 days.

Swing traders focus purely on the technical situation of a stock.  They are interested only in the stock chart and the momentum (rate of change in the stock price).  There is no real interest in the company’s fundamentals or economics in general.

Advantages

With a mastery of technical analysis this can be a good way of taking advantage of price movement in stocks.

Staying primarily in cash and staying in trades for shorter periods can reduce the risk of loss during correction days in the market.

Disadvantages

Trading in and out of stocks too frequently can mean that you miss out on any major medium to longer term gains in stocks or in the market.

If your timing is bad you can lose a substantial amount in a short period of time.

High transaction costs – making so many trades means you have to pay for each transaction, this means you need to make more money per trade to cover the costs of the trade.

Average trade duration

1 to 5 days

Effort to maintain the strategy

High – many trades

Risk Rating

High

Facebook comments:

comments

Categories : Basics

Comments

  1. I every time emailed this weblog post page to all my friends, because if like to
    read it afterward my friends will too.

Leave a Reply

Independent, Unbiased Education

This is an independent, unbiased resource for learning to trade the stock market. Liberated Stock Trader receives no payments from any company whose stocks are discussed and promotes no particular stock. If the author holds a stock it will be disclosed in the article.

Privacy Policy

We will never share your details with any third party.
Read Our Privacy & Cookie Policy
Read Our Terms & Conditions
Read our Returns Policy

Disclaimer

This site is provided to you for informational purposes only and should not be construed as an offer to buy or sell a particular security or a solicitation of offers to buy or sell a particular security.
Read our Site Disclaimer