Swing trading is a short- to medium-term trading strategy that aims to capture price movements or "swings" in financial markets over a few days to several weeks. Traders use technical analysis, chart patterns, and sometimes fundamental analysis to identify potential entry and exit points. Unlike day trading, swing traders hold positions overnight, seeking to profit from momentum or market trends. This strategy requires patience, discipline, and risk management, as markets can be volatile. Swing trading is popular among part-time traders because it doesn't require constant monitoring, yet it still offers the potential for steady profits with calculated risk.
