GlossaryIntermediate
Swing Trading
A trading style that holds positions for days to weeks, aiming to capture a significant portion of a medium-term price swing.
Swing trading is a trading style that holds positions for days to weeks, aiming to capture a significant portion of a medium-term price swing, sitting between the very short holding periods of scalping (see Kaavon's "Scalping" glossary definition) and the much longer holding periods of a long-term investment approach.
Swing trading generally requires less constant, active monitoring than scalping or day trading (see Kaavon's "Day Trading" glossary definition), since positions are held over a longer period, but still requires more active decision-making than a passive, long-term buy-and-hold approach.
Examples
- A swing trader might hold a position for one to two weeks, aiming to capture a significant portion of a medium-term price move.
- Swing trading requires less constant monitoring than day trading, since positions are held over days or weeks rather than closed within the same session.