Swing Trading

Swing trading sits between day trading and position trading, holding positions from several days to weeks to capture medium-term price movements. Swing traders use technical analysis to identify trend reversals and momentum shifts, often entering at support/resistance levels or chart pattern breakouts. This style requires less time than day trading, avoids PDT rules, and allows traders to capture larger moves. Common strategies include trend following, mean reversion, and breakout trading. Swing traders must manage overnight and weekend risk. Success requires patience, discipline, and the ability to let winners run while cutting losses quickly.