Swing trading is a style of trading that involves holding positions for a period of a few days to several weeks in an effort to profit from short-term price changes or “swings”. Swing traders typically look for instruments that are highly liquid and have the potential for large price movements, such as stocks, currencies, or commodities. They use technical analysis to identify trends and support and resistance levels, and then enter and exit trades based on these factors. Swing trading can be a relatively low-risk way to trade, but it also has the potential for significant losses if trades go against the trader.
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