All Collections
FAQs
What is swing trading?
What is swing trading?
Sarah avatar
Written by Sarah
Updated over a week ago

A growing group of investors are turning to swing trading to maximize profit and take control of their financial future. Over the last decade, the average investor has made no money in the market and many have lost much of their retirement and savings, between the bursting of the tech bubble and the real estate bubble. After years of investing and having small returns or negative returns, investors are saying enough! Swing trading is the technique of buying and selling stocks, currencies or commodities, holding the position for days, weeks, or months, then selling for a profit. Swing trading by definition is anything that is a short term capital gain/loss vs a long term capital gain or loss. Long term is defined by holding a stock over a year. A good swing trader never falls in love with a stock, instead using it as a vehicle to profit from. A swing trader looks to maximize gains through playing the wild swings in anything they can trade. Having said that, a Pro Trader may position themselves on a few trades for the longer term for investors looking for that longer term guidance. They would make that very clear in the daily videos. Example: Swing trading is the technique of buying stocks at support and selling into resistance, then moving on to the next swing trade. Flextronics International Ltd. (NASDAQ:FLEX) is a perfect example in the chart below, as it bottoms out at $5.00 per share, then spikes to double top resistance at $8.50 over the course of a few months. A swing trader buys at $5.00 and sells at $8.50, never looking back, always moving on to the next swing trade.

Did this answer your question?