What is Swing Trading?
☝️☝️☝️⬇️⬇️⬇️📊📊📊
Swing trading is a short- to medium-term trading strategy where traders buy and hold an asset for a few days to weeks to profit from price swings. The goal is to capture gains from market movements rather than holding long-term like an investor or making quick trades like a day trader.
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How Swing Trading Works
1️⃣ Identify a Good Entry Point – Use technical analysis (chart patterns, moving averages, RSI, etc.) to find a good buying opportunity.
2️⃣ Buy the Asset – Once you confirm a potential price rise, you enter the trade.
3️⃣ Hold for a Few Days or Weeks – Unlike day trading, you don’t exit the trade in hours. You wait for a significant price movement.
4️⃣ Exit When You Hit Your Target – Sell when the price reaches a profitable level.
5️⃣ Repeat the Process – Find the next opportunity and trade again.
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Example of Swing Trading in Crypto
Buy BTC at $60,000 after noticing a strong support level.
Hold for 5-10 days as the price rises.
Sell BTC at $65,000 when it reaches resistance, making a 5K profit per BTC.
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Swing Trading vs. Other Strategies
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Is Swing Trading Halal?
✔ Halal if done without leverage or interest-based trading
✔ Avoid excessive speculation and gambling-like behavior
✔ Stick to real assets and not derivatives (futures, options, etc.)
Would you like strategies to improve your swing trading skills?
