What is Swing Trading?
A growing group of investors are turning to swing trading to maximize profit and take control of their financial future. Over the last decade, the average investor has made no money in the market and many have lost much of their retirement and savings, between the bursting of the tech bubble and the real estate bubble. After years of investing and having small returns or negative returns, investors are saying enough!
Swing trading is the technique of buying and selling stocks, currencies or commodities, holding the position for days or weeks then getting rid of them for a profit. A good swing trader never falls in love with a stock, instead using it as a vehicle to profit from. A swing trader looks to maximize gains through playing the wild swings in anything they can trade.
Example: Swing trading is the technique of buying stocks at support and selling into resistance, then moving on to the next swing trade. Flextronics International Ltd. (NASDAQ:FLEX) is a perfect example in the chart below, as it bottoms out at $5.00 per share, then spikes to double top resistance at $8.50 over the course of a few months. A swing trader buys at $5.00 and sells at $8.50, never looking back, always moving on to the next swing trade.
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