Swing Trading

AAA

DEFINITION of 'Swing Trading'

A style of trading that attempts to capture gains in a stock within one to four days. Swing traders use technical analysis to look for stocks with short-term price momentum. These traders aren't interested in the fundamental or intrinsic value of stocks, but rather in their price trends and patterns.

INVESTOPEDIA EXPLAINS 'Swing Trading'

To find situations in which a stock has the extraordinary potential to move in such a short time frame, the trader must act quickly. Therefore, swing trading is mainly used by at-home and day traders. Large institutions trade in sizes too big to move in and out of stocks quickly. The individual trader is able to exploit such short-term stock movements without having to compete with the major traders.

RELATED TERMS
  1. Wide-Ranging Days

    A description of the price range of a stock on a particularly ...
  2. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  3. Profit Taking

    The action of selling stock to cash in on a sharp rise. This ...
  4. Stag

    A slang term for short-term speculator. A stag would be equivalent ...
  5. Swing

    1. A fluctuation in the value of an asset, liability or account. ...
  6. Institutional Investor

    A non-bank person or organization that trades securities in large ...
Related Articles
  1. Introduction To Swing Trading
    Trading Strategies

    Introduction To Swing Trading

  2. The Daily Routine Of A Swing Trader
    Trading Strategies

    The Daily Routine Of A Swing Trader

  3. Introduction To Swing Charting
    Options & Futures

    Introduction To Swing Charting

  4. Understanding Forex Rollover Credits ...
    Forex Education

    Understanding Forex Rollover Credits ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center