Swing trading stocks and commodities can be thought of as a blend of day trading and longer term trend investing. A swing trader will as a rule hold a stock for anything between a few days to 3 or 4 weeks with the main emphasis being to profit on these short to medium term swings of bullishness or bearish sentiment of stocks.
Swing trading can be a great technique to use when there is no clear movement in the markets, such as now. This is because as news flows into the markets there will always be these weekly to monthly swings in price. Therefore there may be a three month period where a particular index moves very little overall. However this same period can be a very profitable one for a successful swing trader.
Currently many leading economists and market observers are predicting a long shallow recession in the US which will most likely mean a sustained period of little or no growth in the stock markets. Such market conditions will be ideal for swing traders, unlike the rapid growth in the markets we saw prior to 2007.
The aim of swing trading then is not to make millions from one or two trades. Instead the sing trader aims to trade relatively frequently, diving in and out of stocks making profits from short to medium term fluctuations in prices. As a result, swing trading can be a great start point for beginner investors as well as more experienced traders.
One of the best books out there on swing trading is “The Definitive Guide to Swing Trading Stocks And Commodities" by Martin Pring. His is now recognized as the best in class publication and is highly recommended if you'd like to learn more about swing trading.
For a review of the book “The Definitive Guide to Swing Trading Stocks And Commodities" by Martin Ping please visit the authors website.