Swing Trading: What It Is & How It Works

There are various ways to approach the stock market as a trader. Some investors go into the market looking to trade for short-term profits whereas others would rather hold their positions for an extended period and trade for long-term profit — swing trading.

What is Swing Trading?

Swing trading is the term attributed to a medium to long-term approach to trading stocks. This approach to trading focuses on traders profiting off changing market trends over a set timeframe. In layman's speak, it means stock traders hold their position or assets for more than a day with the intention of profiting from price changes over this period of time. Swing trading is one of the trading techniques that require traders to familiarise themselves with technical analysis/price action setups on the chart.

What stock assets should you trade?

As a trader looking for the right stock to trade, it is important you take extra when entering into the market as getting into a “bad” market could reduce your profit margins, render your trading strategy null, and/or increase your unanticipated risk. To prevent these, here are a few ways to select the right stock asset to trade:

  1. Keep a close eye on the assets macroeconomic calendar event, as they give traders an insight about stock potential(s).
  2. 2. Look out for the financial statement or earnings report of the stock you are looking to trade.
  3. 3. Stick to your trading strategy and understand chart patterns. Looking to start trading right away?

I Want To Start Trading



Democratizing financial trading, one African at a time

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