1. What is swing trading?
Swing trading is quite populair in the United States. Swing traders act on a "swing" on a stockchart. They actively look for stocks, which are presumed to make a fast upward of downward move.
Swing Swing trading differs from daytrading but it is not a longterm trading style either. Commonly a swing trader holds his positions for a few days, at the most a few weeks.
A swing trader is not greedy. If he earns a few percent on his trade, he will be content. However, he will try to apply his swing trading tactics on more than one stock and will, if the opportunities are present, execute several swing trades per week.
A swing trader could be thought of as an active investor. A swing trader does not have very risky mindset and will avoid huge risks. He always places a stoploss order and will not enter his trade impulsively.
Technical indicators are very popular tools in swing trading in order to determine the entry and exit points.
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