Swing Trading sits in the middle of the continuum between day trading and trend following. Swing traders hold a particular stock for a period of time, generally between a few days and two or three weeks, and trade the stock on the basis of the general upward or downward trends.
Swing Trading takes advantage of brief price swings in strongly trending stocks to ride the momentum in the direction of the trend and combines the best of two worlds - the slower pace of investing and the increased potential gains of day trading. Swing Trading is not high-speed day trading. Some people call it momentum investing, because you only hold positions that are making major moves. By rolling your money over rapidly through short term gains you can quickly build up your equity.
Swing Trading takes advantage of brief price swings in strongly trending stocks to ride the momentum in the direction of the trend and combines the best of two worlds - the slower pace of investing and the increased potential gains of day trading. Swing Trading is not high-speed day trading. Some people call it momentum investing, because you only hold positions that are making major moves. By rolling your money over rapidly through short term gains you can quickly build up your equity.
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