Swing trading is a fast paced trading style where a trader will trade in and out of a stock during a one run period. Swing trading does not hold a stock through a retracement or long consolidation period. Swing trading is a far more lucrative way to trade stocks than day trading as you have lower trading expenses and fewer losses. It is also much easier to learn and is lower risk than day trading. Many day traders find swing trading to be much more enjoyable as well as profitable. Swing trading takes about 1 to 2 hours each weekday evening to study charts and select picks for the next trading day. Not every day is good for swing trading, so there will be some days that you are holding stocks but are not entering new orders.

Swing trading is an excellent choice for traders who like to be active in the market and who prefer to trade stocks quickly from entry to exit points. It is well suited for people who have a couple of hours each day to study charts and market conditions for trading. It does require a moderate sized capital base and good chart analysis skills.

What is a swing trade run? A swing trade run is the number of days that a stock moves up (or down), without pausing or retracing. This can range from 1 day to 10 days. The average is 3-5 days for a swing trade run. The run points can be anywhere from 2 to 20 or more points. To calculate your profits you multiply your points gained by the number of shares you have. For instance a 5 point run gain with 200 shares would give you $1000.00 in profits in a couple of days.

Swing trading is not for everyone. It is suited to those traders who have time each evening to study charts, who like daily activity in the market, and who have a moderate sized capital base available to trade stocks. Swing trading is more difficult and takes more time to become proficient at than Position Trading so advanced training is key to Swing Trading Success.