Swing trade意思

"Swing trade" is a trading strategy that involves holding onto a security for a period longer than a day but shorter than the long-term investing horizon. The goal of swing trading is to capture gains in the stock market by taking advantage of short-term price movements.

Swing traders typically look for stocks that are showing signs of momentum and are likely to continue moving in a particular direction. They will buy stocks that are on the rise and sell them when they believe the momentum has peaked. Conversely, they will short sell stocks that are falling and cover their positions when they believe the stock has bottomed out.

The holding period for swing trades can range from a few days to a few weeks, depending on the trader's strategy and the market conditions. Swing traders may use technical analysis to identify trends and patterns in the market, and they may also use fundamental analysis to evaluate the underlying strength of a company.

Swing trading can be a risky strategy, as it involves the potential for significant losses if the trader's predictions about market movements are incorrect. However, it can also be a lucrative strategy for traders who are skilled at reading the market and making timely trades.