Swing Trading

Dictionary Says

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 Says

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 Definitions

  • Day Trader

    A stock trader who holds positions for a very short time (from minutes to hours) and makes numerous trades each day. Most trades are entered and closed out within the same day.
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  • Institutional Investor

    A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. ...
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  • Profit Taking

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    • Technical Analysis

      A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's ...
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    • Swing

      1. A fluctuation in the value of an asset, liability or account. This term is most commonly used when referring to a situation in which the price of an asset experiences a significant ...
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    • Wide-Ranging Days

      A description of the price range of a stock on a particularly volatile day of trading. Wide-ranging days occur when the high and low prices of a stock are much farther apart than they ...
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    • Stag

      A slang term for short-term speculator. A stag would be equivalent to a day trader who attempts to profit off short-term market moves by quickly moving in and out of positions. Day ...
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