Swingtrading

Swing Trading (English for: swing = momentum, or spin, trading action = ) indicates a highly speculative investment strategy in which an attempt is made to generate profits by taking advantage of price fluctuations.

Swing trading involves taking and re- dissolution of trading positions such as equities, derivatives, etc. usually within a short period of time, often within a day ( day trading ). The choice of positions is performed by short-term chart signals.

The approach of swing trading is that medium-and long -term price movements generally consist of so-called Swings. This means that a stock never runs straight off in one direction, but this ( the so-called swing ) runs always under short-term price fluctuations.

This Swings take place always and in every market phase, in any market phase, the exchanges are here. Both in a bull market, sideways trend or a bear market, there are smaller and parent Swings; often just make the sideways phases are actually interesting possibility for successful swing trading dar. When swing trading, is basically more of a short-term trading strategy, since the positions are mainly dissolved in the range of a few days or weeks, but sometimes only taken hours and again.

Whether one can systematically generate excess returns using the swing trading, is not scientifically proven and controversial. Representatives of the traditional financial market theories ( efficient market hypothesis, random walk ) reject this idea. Main article: Chart Analysis.

• Trading
• Financial Strategy