There are many different terms or phrases floating around about differing styles of trading. You have probably seen or heard people talking about and using these terms on forums and websites. One of these most popular of these is called swing trading. It is extremely popular and widely talked about due to how robust and reliable it is as a style of trading.
Swing trading is probably one of the oldest styles of trading. The idea behind this style of trading is that markets move in waves. Price will trend up for some time and then trend down for another period of time. This provides a trader with great opportunities to take chunks out of the market as it moves in these waves. A swing trader aims to place trades that allow them to ride these waves of price movement.
Unlike many other styles of trading, swing trading is not a short term or high risk style of trading when implemented properly. Trades are usually placed and held for several days. This allows a trade enough time to ride a wave of price movement. Being long term, the returns on these trades can also be quite profitable which is why this style is used extensively by banks and other large corporate market players.
Swing trading offers a trader the opportunity to take chunks out of the market as price moves up and down through the market over several days. This method of trading offers high returns with low risk and can be used in almost any market.
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