All About Swing Trading


What is Swing Trading?

Swing trading is a style of trading that attempts to profit on gains in any financial instrument within a relatively short period of time.

How long does a Swing Trade last?

Most Swing Trades last a period of days to weeks. They could go many weeks or months if a trader has a long running trend and they want to let profits run, but most traders of exiting their trades within a few days or weeks.

What can I Swing Trade?

A trader can Swing Trade just about any financial product, but most Swing Traders limit the financial product/instruments to Stock, Options, Futures & Forex. There is a large number of financial instruments to trade in just those four categories. Swing Trading Stocks would be the most popular in the United States as there is a large number of Americans that have access to trading stocks and the popularity is very prominent.

Why do they call it Swing Trading?

Traders are trying to capture profits during the ”Swing” of the market movement. The Swing is a part of how a market moves and trades are trying to trade during that part of the market movement.

What is the “Swing” in Swing Trading?

The “Swing” in Swing Trading is a reference to what is called an “impulse” phase on a chart and the “Correction” phase. The impulse move on any financial instrument is the longer duration move in a chart that can produce a larger amount of profit compare to the “correction” phase.

The Swing in an uptrend is from the Swing Low (SL) to the Swing High (SH) also known as an Impulse Phase. In a downtrend, the Swing (or Impulse Phase) is from the Swing High (SH) to the Swing Low (SL).

Let’s look at an example:

How do I Swing Trade?

Most Swing Traders will use either Fundamental Analysis or Technical Analysis to make their trading decisions. Some, like, find it best to use a combination of both Fundamental & Technical Analysis for improved result possibility.

Is Swing Trading Easy or hard to do?

For most traders is seems that Swing Trading is a good place to start compared to day trading as the markets do not move as fast compare to day trading. Swing Trading is not as time consuming as day trading in general, and a trader has more flexibility in how often they trade and what markets they want to trade. Some traders may only want to trade a few hours each week, so Swing Trading could be a good solution for that. It often is easier for most traders because most people have a day job or business or something that keeps them busy during the day, so Swing Trading could be a nice compliment as they can Swing Trade is still keep their normal lifestyle.


~ Swing Trading is trying to capture profits during the Impulse Phase (Swing).

~ Trade duration typically last days to weeks

~ Can be done in almost any brokerage account

~ Can be done in Equities (Stocks), Options, Futures & Forex

~ Fewer but larger gains when right (profitable)

~ Typically trades with the dominate trend direction

~ Can do it part-time or limited involvement

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