Swing trading is a trading strategy that involves buying stocks or other financial instruments for a short period of time, typically from a few days to a few weeks, with the aim of profiting from price movements or "swings" in the market. Swing traders use technical analysis to identify trends and patterns in the market, aiming to enter and exit trades at strategic points to achieve gains.
Swing trading differs from day trading, where traders buy and sell securities within the same trading day, and it is considered a popular approach for traders looking to capitalize on short-term market fluctuations while reducing the risks associated with day trading or long-term investing.