What is Swing Trading?

Swing trading is a short-term strategy used by traders to buy and sell stocks whose technical indicators suggest an upward or downward trend in the near future -- generally one day to two weeks.

How does Swing Trading work?

Swing trading uses technical analysis to determine whether or not particular stocks might go up or down in the very near term. By examining technical indicators, day traders look for stocks whose price movements have momentum -- signaling the best times to buy or sell. Swing traders are not concerned with the long-term value of a given stock.

Why does Swing Trading matter?

Though based in sound methodology, swing trading is risky. The successful swing trader is focused only on locking in substantial gains in short spurts of time, making the strategy especially vulnerable to unexpected economic shocks (e.g. oil shortages, high interest rates, etc.).

Ask an Expert about Swing Trading

All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Swing Trading.

Be the first to ask a question

If you have a question about Swing Trading, then please ask Paul.

Ask a question
Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

Verified Content You Can Trust
verified   Certified Expertsverified   5,000+ Research Pagesverified   5+ Million Users