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SWING TRADING



Swing trading is a capture short- to medium-term price movements in financial instruments such as stocks, commodities, or currencies. Swing traders typically hold their positions for a few days to a few weeks, focusing on taking advantage of "swings" in price trends, whether upward (bullish) or downward (bearish).
 
Characteristics of Swing Trading: Time period: Positions are generally held longer than day trading but shorter than long-term investing means 2 to 15 days.

 Technical Analysis: Swing traders rely heavily on charts, patterns, and indicators (e.g., moving averages, Bollinger band RSI, RS, MACD) to identify potential entry and exit points. 

 Market Trends: They aim to trade in the direction of the overall trend or during periods of consolidation when price fluctuations occur within a defined range. 

 Risk and Reward: Swing traders seek to maximize gains from short-term price movements while managing risk through tools like stop-loss orders. 

 Advantages: Less time-intensive than day trading, as positions don't require constant monitoring. Offers more opportunities for profit compared to long-term investing due to the shorter holding period. 

 Disadvantages: Market volatility can lead to losses if the price moves against the position. Holding positions overnight carries risks, such as news or events affecting prices. Swing trading suits individuals who have time to analyze the market daily but prefer not to be tied to their screens all day.

 Daily Routines of swing trader 
 1) weekly analysis of stock and indices.
 2)create buy and sell list.
 3)Prepare a complete trading plan before market open.
 4)Buy and sell the stock in first zone(9:15 to 11:15)
 5)Monitors the stock at regular intervals. 
6)Put the trailing stop loss/time stop loss.
 7)Shut all the external noise.
 8)Check the positions before market close.
 9)Journaling - Reason to buy /sell

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