In This Chapter
• Swing trading may be an entry point for beginning active traders
• How swing trading fits into the active trader’s strategy
• Swing trading in action
• Risk and reward in swing trading
Swing trading is a strategy that capitalizes on price tendencies of some stocks to move in a certain direction for short periods before reversing. This “swinging price,” from up to down, gives active traders a window of opportunity to make some money. It is not easy money (nothing about active trading is easy), but it can be lucrative.
Swing traders look for profits they can ride for one to four days or even a week or more. This requires discipline because it is impossible to know when a stock will hit a top or bottom price. ...