Swing trading is a speculative strategy where traders look to take advantage of Range Bound as well as Trending Markets. By picking ‘tops’ and ‘bottoms’, traders can enter long and short positions accordingly.
Length of trade:
Swing trades are considered medium-term because trading positions are generally done anywhere between a few hours to a few days. Longer-term trends are favoured as traders can capitalise on the trend at multiple points along the trend.
Consider the following list of pros and cons to determine if this strategy would suit your trading style.
- Substantial number of trading opportunities
- Median risk-to reward ratio
- Entails strong technical analysis
- Still requires extensive time investment
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