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What?
Swing trading makes profit from swings in price movement over several days. Swing trading is based on the technical analysis strategy, which observe market activity from price and volume. Price can rise stimulated by greed and fall by fear. Swing trading uses others emotion for investing.
It starts to enter when greed starting to grow, and exit when fear is coming. The key to successful swing trading is picking the right stocks. The best candidates are large-cap stocks that are actively traded, so that you can easily buy and sell it.
How?
Swing traders use technical analysis to look for stocks with short-term price momentum based on their price trends and patterns. When price move up with high volume it is time to buy. When price move down with high volume it is time to sell.
Money management is very important for swing trading. You have to limit your self from loss. When you have reach that loss limit, you must be disipline and close your position.
For who?
Swing trading is very easy for beginner traders, but it can also offers significant profit for intermediate and advanced traders.
This is mainly used by individual. Large institutions are too big to move in and out quickly.
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