swingkaupankäynti

Swingkaupankäynti, also known as swing trading, is an investment strategy that attempts to capture gains in a stock over a period of days, weeks, or months. Swing traders primarily use technical analysis to identify trading opportunities. They aim to profit from price swings that occur over their chosen timeframe. This contrasts with day trading, where positions are closed within the same trading day, and with buy-and-hold investing, which involves much longer holding periods.

Swing traders typically look for stocks that are exhibiting a clear trend or are showing signs of reversing a trend. They often employ chart patterns, technical indicators like moving averages and oscillators, and support and resistance levels to make their trading decisions. The goal is to enter a trade when the probability of a price move in a certain direction is high and exit the trade when that move is exhausted or shows signs of reversing. Risk management is a crucial component of swing trading, with stop-loss orders commonly used to limit potential losses. The holding period for swing trades is generally longer than for day trades but shorter than for long-term investments. This approach requires patience and discipline to wait for the right setups and to manage trades effectively.