#SwingTradingStrategy
What is the swing trading strategy?
The swing trading strategy is a method of trading in financial markets aimed at achieving profits from short to medium-term price movements. The trader in this strategy relies on benefiting from the 'volatility' or 'swing' that occurs in asset prices over a period typically ranging from several days to weeks.
How does the swing trading strategy work?
The basic idea behind swing trading revolves around buying assets when the price is at a relatively low point (bottom) and selling them when the price rises to a higher point (peak), or vice versa for short-selling trades. The trader primarily relies on technical analysis to determine suitable entry and exit points.
Advantages of the swing trading strategy
Less time-consuming compared to day trading: as the trader does not need to monitor the market continuously throughout the day.
Exploiting average price movements:
Flexibility in trading.
However, its disadvantages and risks include exposure to market risks overnight: because trades remain open for days, the trader may be exposed to sudden price movements outside of trading hours.
Need for a good understanding of technical analysis: requires deep knowledge of tools and technical indicators.
Impact of news can significantly affect price movements.