Definition and explanation of Swing Trading
Term
Swing Trading a.k.a Momentum Trading
Usage
Trading term, Trading Software, Trading Tools
Context
Answers questions: What does Swing Trading mean? Define swing trading. Explain swing trading.
Definition of Swing Trading
Swing Trading is a term used to describe a trading strategy where the trader tries to trade and benefit from the short-term price changes (or price swings) of a stock or other financial instrument.
A swing trader typically buys a stock when it’s gone down for a couple of days, though in an upward trend, to be able to take short term profits from the upward shift in the stock price (rebound). The opposite action is taken in a downward trend.
It’s generally beleived to be best to stick to high volume stocks, or other financial instruments with high volume, in swing trading, in order to not get stuck in the paper when the swing trader wants to sell.
Swing trading is sometime referred to as momentum trading.
Other source of definitions of Swing Trading: Wikipedia.