A Beginner’s Guide to Swing Trader and Swing Trading Strategier

Swing trading is becoming increasingly popular these days, due to its higher returns and reduced risks. The following article gives a better insight on the meaning of swing trading and swing trader, strategies that can be used, etc.

Individuals might often save their finances to invest in something, which has long-term returns. This can include investing in property, gold, shares, and similar options. These days, one of the most common means for investing, is the stock market. While individuals are considering investing their money in this market, they need to understand the different trading methods available, the right time to invest and sell, right stocks to invest in, etc. Some of these trading methods are day trading, swing trading, scalping, etc (Zucchi K., Investopedia, 4 COMMON ACTIVE TRADING STRATEGIES, 2016). Traders might use varied methods, depending on the market situation, their expertise in this field, etc. One of the methods that is mostly used by traders, due to its higher returns and potentially lower risks, is swing trading. The following points provide a brief overview of this method:

What is swing trading?

Out of the different trading methods used, one of the main differences between day-trading and swing trading is that the latter is used by traders, to hold their positions generally for more than a day. This period can range a single day to a several weeks. Traders using this method, make use of technical analysis to look for stocks, which can have short-term price momentum. One of the pros of this method is efficient use of capital and increased returns (Kuepper J., Investopedia, THE DAILY ROUTINE OF A SWING TRADER, 2016).

Who is a swing trader?

Unlike day traders, swing traders usually require time more than a day, to analyze the momentum of the stock before buying or selling it. A trader dealing with swing trading generally makes use of fundamental and technical analysis. The technical analysis is used by the trader to understand the previous prices, and the fundamental for shaping the future price movements (Stanley J., Daily FX, HOW TO COMBINE TECHNICAL AND FUNDAMENTAL ANALYSIS, 2012).

What are the swing trading strategier?

The strategies used for swing traders will help in determining, if the price swings will move upwards or downwards (Netpicks, SWING TRADING STRATEGIES, n.d.). Some of the strategies that are used by traders are:

1. Keeping a track of price actions and using technical strategies
2. Working against the trend
3. Not getting caught up in the company
4. Using candlesticks pattern
5. Having a well-planned exit strategy

Individuals, who are new to the stock market, can consider taking help of companies that provide similar services. One of the experienced companies, which provide swing trading aktier, daily stock tips, newsletters, etc, is Stockpicker. More information can be found on their website.