So what the hell is swing trading? Simply put, swing trading is a style of trading that attempts to profit from securities’ short-term price movements spanning a few days to a few weeks. Swing traders focus on taking smaller but more frequent gains and cutting losses as quickly as possible. This trading style is purely based on assumptions that market prices rarely move in a straight line and that traders can profit from entering and exiting trades at these swings.
Swing traders wait for low-risk opportunities and attempt to take a share of a significant market’s move up or down. When an overall market is riding high, they go long (buy) more often than they go short (sell). When the overall market is weak, they go short (sell) more often than they go long (buy). If there are no significant market movements, swing traders usually don’t trade and wait for new opportunities to arise.