A Complete Guide to Swing Trading

Swing Trading is quite popular among beginners due to its short-term trading method. Traders can trade any tradable asset for a time period ranging from a few days to a few weeks, depending on the market as how it reacts. Generally, swing traders can hold asset for a longer time compared to day traders who can hold assets for a single day only.


The main goal of swing traders is to determine the trend and then earn profits from the swings or price changes. Swing traders use technical analysis mostly to get the full advantage of the market trend while making sure there won’t be any potential loss.

Swing trading and day trading combine particular commission costs and risks that are somehow different from typical investment techniques and strategies.

Swing Trading Method

Mostly, swing traders think ‘’trend is their friend’’ and therefore, try to trade while remaining in the main trend of chart. If security is in the trend, the trader will go long that security by buying futures contracts, shares, or call options. If the trend is down, traders can short shares, buy put options or futures contracts.


Sometimes neither a bearish nor bullish trend is detected, but you can see security moving in an estimated pattern between the resistance area and parallel support. Traders can use this opportunity too by securing a long position close to the support area and short near the Resistance Area.

Lastly, one should need a reliable, professional online trading broker to get thing started. Since there’s no dearth of fake brokerage services, one may be confused with lot of different brokers claiming to give you the best services. So, it’s better that you should think twice prior to making things final with any online trading broker.

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