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What is Swing Trading?

This article was posted on Jun 11, 2008

Q.What is Swing Trading?
A.Swing Trading takes advantage of brief price swings in strongly trending stocks to ride the momentum in the direction of the trend.

Swing trading combines the best of two worlds — the slower pace of investing and the increased potential gains of day trading.

Swing traders hold stocks for days or weeks playing the general upward or downward trends.

Swing Trading is not high-speed day trading. Some people call it momentum investing, because you only hold positions that are making major moves.

By rolling your money over rapidly through short term gains you can quickly build up your equity.

Q.How does Swing Trading work?
A.The basic strategy of Swing Trading is to jump into a strongly trending stock after its period of consolidation or correction is complete.

Strongly trending stocks often make a quick move after completing its correction which one can profit from.

One then sells the stock after 2 to 7 days for a 5-25% move. This process can be repeated over and over again. One can also play the short side by shorting stocks that fall through support levels.

In brief a Swing Trader’s goal is to make money by capturing the quick moves that stocks make in their life span, and at the same time controlling their risk by proper money management techniques.

22 Responses

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Comment pages: 12Show all

  1. CB Says:
    October 3rd, 2009
    Posted at: 9:57 pm

    Hi Jubaraj, invest in strong companies which are trading at a low PE. we do not have a auto reply feature yet..


  2. test Says:
    December 27th, 2009
    Posted at: 7:35 pm

    hi cb, how r u, well cb i want to invest in stock as well as in equitdy share where i can get a good returns. i was planing to make lic police where i should keeping paying half yearly prenimun and my return is after 15 years or 25 years well i cannot wait till that perriod , can u please guide me where i can get a good return in 3 to 5 years i like to invest around 2 lakhs, whatis the best,


  3. test Says:
    December 27th, 2009
    Posted at: 7:44 pm

    hi cb. canu advise me where i can start investing in stock,euidity,f&o call or gold what do u suggest well i am a new invester and i want a good returns what is teh best for me


  4. Ameen Says:
    February 15th, 2010
    Posted at: 10:23 am

    HI... CB I have taken Bharti at Rs.400 what should I do ???
    What is target price for DLF this week


  5. ashoke kumar ghosh Says:
    August 26th, 2010
    Posted at: 5:01 pm

    dear sir,
    i have purchased 31 pcs tatasteel @ RS.530 per share. what should i do now.
    awaiting ur early reply.
    thanks


  6. kapil Says:
    August 31st, 2010
    Posted at: 5:36 pm

    hi kartik, i m new in skt mkt. which stock is good for invest low PE or high PE


  7. peddibabu Says:
    April 29th, 2012
    Posted at: 10:58 pm

    dear sir i bought orchid chemical fut my buying price is 195 ple tell technical view can i hold or exit


  8. CB Says:
    April 29th, 2012
    Posted at: 11:06 pm

    Hi peddibabu, its a hold for short term. is facing resistance at 195 levels. once manages to cross it, can head upto 215


  9. rajkumar Says:
    September 13th, 2012
    Posted at: 11:23 am

    nifty 1st target nearly achieved book partial profit near 5447 in spot and rest hold stoploss visit for positional calls
    http://rajkumarmarkettips.blogspot.in/


  10. S.chatterjee Says:
    February 18th, 2013
    Posted at: 12:30 pm

    Sir
    For Swing trading what are the tecnical parmetrs to be takn nto considrtn.Please sugst.


  11. BestForexPartners Affiliate Program Affiliate Says:
    March 6th, 2013
    Posted at: 4:05 pm

    Hello There. I found your weblog the usage of msn. This is an extremely smartly written article. I will be sure to bookmark it and return to read more of your useful information. Thank you for the post. I'll certainly comeback.


  12. mohan Says:
    December 11th, 2013
    Posted at: 12:49 pm

    shall i try for lupin ltd for short term (1week)


  13. CB Says:
    December 11th, 2013
    Posted at: 12:53 pm

    Hi mohan, not yet. has resistance at 880


  14. Jai Prakash Says:
    July 2nd, 2014
    Posted at: 7:17 pm

    Dear Sir/Madam
    I have been investing in stock since long without proper knowledge. Due to this I suffered
    more than 35 thousands. I am in loss of Dr Reddy about 22 thousand which now reduced
    to 11 thousands now.
    Request you to kindly guide me so that I can re-cover my loss and do proper trading.
    Thanks
    Regards
    Jai Prakash


  15. Joy Says:
    December 14th, 2014
    Posted at: 1:31 pm

    Sir please give me info of websites which gives latest news updates of market/stocks


  16. Joy Says:
    December 14th, 2014
    Posted at: 1:33 pm

    Really this is the best platform for Beginners learning. .
    Thanx NSE Guide.

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