#SwingTradingStrategy  of Contents

Introduction to Swing Trading

By 

Mary Hall

Updated March 04, 2025

Reviewed by 

Samantha Silberstein

Fact checked by 

Vikki Velasquez

Part of the Series

Guide to Swing Trading



Daniel Balakov / Getty Images

What Is Swing Trading?

Swing trading is a type of trading in which positions are held for a few days or weeks in order to capture short- to medium-term profits in financial securities. Swing traders use technical analysis to make trading decisions.

Most fundamentalists are swing traders since changes in corporate fundamentals generally require a short amount of time to cause sufficient price movement to render a reasonable profit. The style of swing trading lies somewhere between day trading and trend trading.

Day trading often results in very short-term holding periods of less than a single day. Profit per transaction is often the lowest.

Swing trading often results in short- to medium-hold periods. Profit per transaction is higher than day trading but lower than trend trading.

Trend trading often results in the longest hold periods. Due to low transaction volume, profits can be highest per position.

Key Takeaways

Swing trading sits in the middle of the continuum between day trading and trend trading.

Swing traders often enter into a position, hold for days to weeks, and then exit their position having hopefully taken profits.

The first key to successful swing trading is picking the right stocks, which are often volatile and liquid.

Swing trading is contingent on market conditions, though there are different trades for every market type.

Swing trading relies heavily on technical analysis and an understanding of price channels, and uses simple moving averages.