Swing trading is one of the more popular and profitable types of trading. It is usually defined and described based on its holding time for financial positions. That aspect also establishes the general difference among trading techniques. Swing trading often involves holding stocks up to three weeks, but the minimum could be overnight. In that sense, its range places it somewhere between day trading and trend trading. Traders who engage in this kind of trading hope to profit from favorable market movements within weekly or monthly charts, enacting decisions based on the swinging trend.
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Some theorists have also equated swing trading with fundamental trading. Fundamental traders often hold their positions at about the same length of time because it commonly requires more than a day for changes in company fundamentals to register a significant movement in the market that could deliver a recognizable gain.
Traders talk about the relative manageability of swing trading compared to other types because of the flexibility it offers. Most people who intend to do it on a part-time basis are attracted to the setup. It doesn’t seem too demanding when it comes to time compared to day trading. It is also not resource-intensive in many respects especially when it comes to investing materials and tools for beginners. Relatively, the learning curve may not be as difficult as the others. Every trading method will, of course, have its own technical hurdle for beginners to manage, but proper education always makes things a bit easier than not knowing anything at all.
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