Relevant for Exams
Swing trading: A market strategy capturing short-term price moves, between investing and day trading.
Summary
The article explains swing trading, a market strategy positioned between long-term investing and high-frequency day trading. It focuses on capturing short- to medium-term price movements, appealing to traders seeking flexibility without constant screen monitoring. Understanding various trading strategies is crucial for competitive exams, especially in the economy and financial markets sections, aiding in conceptual clarity for financial literacy.
Key Points
- 1Swing trading is a market strategy designed to capture short- to medium-term price movements.
- 2It is positioned as an intermediate approach between long-term investing and high-frequency day trading.
- 3The strategy appeals to market participants who prefer not to be constantly monitoring screens.
- 4It allows traders to capitalize on price swings over periods longer than a single day.
- 5This trading methodology is relevant across various global stock exchanges, including those in India and the US.
Full Article
Swing trading sits comfortably between long-term investing and high-frequency day trading, appealing to market participants who want to capture short- to medium-term price movements without being glued to screens all day.