- The basic
strategy of Swing Trading is to jump into a strongly
trending stock after its period of consolidation or
correction is complete.
- Strongly trending
stocks often make a quick move after completing its
correction which one can profit from.
- One then sells
the stock after 2 to 7 days for a 5-25% move. This
process can be repeated over and over again. One can
also play the short side by shorting stocks that
fall through support levels.
- In brief a Swing Trader's goal is to make money by capturing the quick moves that stocks make in their life span, and at the same time controlling their risk by proper money management techniques.