Swing trading is a strategy focusing on capture a few days, weeks, or even 1-3 months of price actions. The key distinguishes between day trading and swing trading: a swing trading position will be held overnight while day trading is not. Since we budget more time on swing trading, it is often less risky than day trading and requires less closely monitoring comparing to day trading positions.
If we are entering the right direction for our day trading, we often take some profits into our pockets and hold some day trading positions overnight, and these day trading positions are now considered as swing trading positions.
Like day trading, swing trading relies heavily on technical charts, news, and volume flows. However, often a fundamental analysis of a company is considered into a swing trading position.
Even though swing trading has less risk than daytrading, there are several risks swing trading contain comparing to day trading:
1. Overnight risks
2. Weekend risks
3. A market reversal risks
4. The company we are trading/ holding has unfavorable fundamental changes or news
A $TSLA full size swingtrading +1300% return example (March 2022)
Swing Trading Discord Alert Performance
The winning rate is still lingering around 50% for 3 months between Apr~June, 2021. July 2021 is a great month and followed by the worst month ever in Aug.
The average return per trade is dropping because we trade less frequently and start to include lower average return per trade strategy "Income Generation". Don't think these two metrics (winning rate & average return per trade) above reflect on our account growth. Therefore, we start to provide the small account benchmarking to provide more "absolute performance".
May~Sept 2021 Small Account Benchmarking (+618%)
Swing Trading Discord Alert Jan 2021 Example