What is swing trading?

Swim trading refers to the practice of buying at a high price and selling at a low price at the same time to create a profit. The concept can be explained similar to the following:

Say your car is at a low price and someone offers you $8.50 per hour. You are considering it. You could pay the money. But then what? Let’s say you find out someone is looking to sell at a very high price, then you would want to be able to protect yourself that if a person does not sell the car it will only be for another buyer. Swimming with the shark is not a real life scenario.

If you want to get more information on the topic we are going to cover some other resources that have swimmable trading guides which you can find on our website:

Also, if you are reading this on the Internet this article might be a little tricky for you so we have tried to keep the explanations brief and to the point. This article is designed to be an introduction but not a complete guide. If you are interested in learning more you can read some books which include useful information. All these books are available in PDF format at their respective site.

What is swing trading?

To explain the basics of swinging we first need to understand that the markets are constantly changing and there are two types of trading. The first is “traditional” trading which involves buying and selling a stock several times within a short period of time, usually in the hour. The second type is “swim trading” which consists simply of buying and selling when the stock is at a low price and selling when it starts to go up.

As a market trader the first type of trading is very risky because there is no way to have your hands in every action. The second type of trading is much riskier because you are not in control of the exact amount you are buying and selling. In the event that you lose money you will go back to the market the next day only to find out there has been a profit again (this is called a counterparty risk).

Traditional trading

Traditional trading is the basis for most stock market trading which involves buying and selling the stock frequently within a short period of time. Traditional market traders buy and sell stocks based on factors, such as a company’s price-to-earnings ratio (P/E ratio), number of employees, revenues and growth targets. In addition, they may