#SwingTradingStrategy Swing trading is a short- to medium-term investment strategy that involves taking advantage of price movements ("swings") of an asset over a few days to a few weeks. Unlike day trading, the swing trader does not aim to close their positions within the same day. They analyze technical trends and chart signals (such as supports, resistances, or moving averages) to enter and exit at the right time.
Advantages:
– Less stressful than day trading, as it requires less monitoring time.
– Can generate interesting gains by capitalizing on larger movements.
– Compatible with a side professional activity.
Disadvantages:
– Exposure to overnight risk (fluctuations while the market is closed).
– Requires a good understanding of technical analysis.
– False signals or rapid reversals can lead to losses.
In summary, swing trading is a good compromise between active investment and flexibility.