Swing trading
Swing trading (English for: swing = to swing or turn, trading = to trade) describes a highly speculative investment strategy in which an attempt is made to make profits by exploiting price fluctuations.
meaning
Swing trading means entering into and then dissolving a trading position such as stocks , derivatives etc. within a mostly short period of time, often within a day (day trading ). The selection of the positions is made with the help of short-term chart signals .
The approach of swing trading is that medium and long-term price movements basically consist of so-called swings. This means that a share never runs linearly in one direction, but always with short-term price fluctuations (so-called swings).
These swings always take place in every market phase, regardless of which market phase the exchanges are currently in. In a bull market , sideways phase or bear market there are smaller and higher-level swings; Often the sideways phases are actually the most interesting possibility for successful swing trading. Swing trading is basically a short-term trading strategy, as the positions are mainly entered and closed in the range of a few days to weeks, but sometimes only hours.
Whether you can systematically generate excess returns with the help of swing trading has not been scientifically proven and is controversial. Representatives of the classical financial market theories ( market efficiency hypothesis , random walk ) reject this idea.
See also
literature
- Jon D. Markman: Swing Trading Essentials . John Wiley & Sons Inc., New York 2003, ISBN 978-1-59280-095-7 .
Individual evidence
- ↑ The Swing Trading Strategy by Marc Rivalland. In: TraderFox.de. Retrieved August 27, 2017 .
- ↑ Swing trading - with momentum into the profit zone. In: finanzen.net. Retrieved August 27, 2017 .