Stock Alert Help! : Hot Topic

Swing Trading

Search Dictionary

Definition of 'Swing Trading'

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

Swing trades are sometimes the result of a day trade that is losing money. A day trader may not want to admit or face the fact that their day trade cannot be closed out as a winning trade and will therefor relabel their trade a swing trade.

Swing trading is more appropriate for smaller traders such as at-home and day traders because of the frequency with which they move in and out of trades. Large institutions trade in sizes too big to move in and out of securities that quickly.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.