
Swing trading is a style of trading in which traders hold positions for a period of a few days to several weeks, with the goal of profiting from price swings within a larger trend. Swing traders typically use technical analysis to identify potential trades, and they may also use fundamental analysis to understand the underlying factors that could affect the price of a security.
Swing traders typically aim to enter and exit trades quickly, taking advantage of short-term price movements while minimizing the risk of being caught in a prolonged trend reversal. They may also use risk management techniques, such as stop-loss orders, to limit their potential losses.
Swing trading is different from day trading, which involves holding positions for a shorter period of time (usually less than a day) and focusing on smaller price movements. It is also different from long-term investing, which involves holding positions for a longer period of time (usually several months or years) and focusing on the overall trend of the market or a particular security.
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