Swing Trading
Hold positions for days to weeks. Capture medium-term moves.
The most popular strategy for individual traders. Not too fast, not too slow.
What Is Swing Trading?
| Aspect | Value |
|---|---|
| Holding period | Days to weeks |
| Targets | 5-20% |
| Frequency | 1-5 trades/month |
| Stress | Medium |
| Focus | Setup, patience |
Best Markets for Swing Trading
| Market | Why |
|---|---|
| Stocks | Medium-term trends |
| Indices | Directional moves |
| Forex | Carry, trends |
| Crypto | High volatility |
Swing Trading Setups
1. Pullback in Trend
- Uptrend established
- Price pulls back to support
- Bounce entry
2. Breakout Retest
- Breakout occurs
- Price retests breakout
- Entry on retest
3. Range Break
- Range established
- Breakout occurs
- Entry on confirmation
Swing Trading Process
Weekly Review
- Check higher timeframe trend
- Mark key levels
- Identify potential setups
Wait for Setup
- Price approaches level
- Entry signal forms
- Enter on confirmation
Manage Position
- Trail stop
- Let trend develop
- Exit on target or reversal
Entry Rules
Criteria:
☐ Higher timeframe trend up
☐ Price at key support
☐ Signal forms (candle/indicator)
☐ Entry trigger fires
Risk Rules
| Rule | Value |
|---|---|
| Max risk per trade | 1-2% |
| Max weekly loss | 5-7% |
| Max concurrent positions | 3-5 |
Swing Trading Checklist
☐ Weekly analysis done
☐ Levels marked
☐ Trend identified
☐ Setup watching
☐ Entry/exit defined
Common Mistakes
1. Stop Hunting
Problem: Stops too tight.
Result: Stopped out, then price moves.
Fix: Place stops beyond key levels.
2. No Patience
Problem: Exiting before target.
Result: Leaving money on table.
Fix: Let targets run.
3. Overtrading
Problem: Too many setups.
Result: Spreading thin.
Fix: Quality over quantity.
Key Takeaways
- Days to weeks — Medium-term holding
- Weekly analysis — Timeframe aligned
- Patient — Wait for setup
- Trail stops — Let profit run
- Popular — Fits most traders
Related
day-trading.md >>>
Capture the swing.