Swing Trading In the real world resembles a swing works in a forward and backward manner, but, in case of trading stocks things are different, as here, the swing moves up n down like the heartbeat.
What is Swing Trading?
It can be called the big brother of Day Trading, because while the day trading lasts for less than one day, Swing Trading can last anywhere between few days to few 2 weeks.Firstly it tries to identify the overall trend of the shares and then captures gain by using Swing Trading within that trend.
Salient Features
• Swing Trading is done in the most liquid stocks or indices or derivatives
• Swing Trading is best for part time traders or new traders
• The risk reward offered in swing trading is one of the best
• Swing trading is one of the most rewarding techniques for making money as well as
developing trading skills
• Traders can take advantage of either the normal swing trade in direction of the trend
or counter trade to take advantage of correction
Some Key words related to Swing Trading techniques
• Support Level
• Resistance Level
• Pivot Points
Trading Tricks
• If the tradable security is in an uptrend, then you can “go long” that security by buying shares
• If the overall trend is down, then you should short the derivatives of the shareNote: Technical Analysis is often used to help traders take advantage of the current trend in the stock market and improve their trades.
While doing swing trading a trader learns good money management skills as well as the trick to keep the risk reward ratio intact.
Want to learn more about Swing Trading?
Swing trading is the practice of earning a profit by buying and selling a security including stocks at different price points with the goal of earning a positive return. This could include buying low and selling high or selling high and buying back at a lower price.
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