Sunday, October 31, 2010

What is a Swing Trade?

What is a swing trade? To me a swing trade is simply a trade that has a target that will most likely take more than one day to hit. If my target is going to be hit during the same day that I put the trade on that is what I call an intraday trade. When some people think "swing" they think about a trade that lasts weeks or months. It can be that but it doesn't have to be. The important characteristic is the size of the price move from entry to last scale or close, not length of time in the trade. In my book, the faster the move happens the better!

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