About Swing Day Trading

Video Transcript

"This is John Pinelli, financial representative, and today we're going to be talking about swing trading. Now, if you think about swing trading it typically lies somewhere between day trading which would be buying and selling in a single day, and trend trading which would be following trends over a longer period of time. So, typically the swing trade would occur between three days to a couple of weeks, and what the investor is looking for is individual price swings within the movement of a stock. Now, if you look at this chart that I'm holding up here you can see this stock which is, looks like it's rising over time. Now, what the swing trader tries to do is they try to look at levels of resistance and levels of support. The levels of resistance and support are marked here by these lines. At the top end we have resistance which means that the stock is essentially being held down at that certain level; it's being resisted from going above a certain price. And then on the flip side we have levels of support where the stock is not able to fall below that certain price. So, what the the swing trader is trying to do is he's trying to benefit within a shorter period of time from those individual price swings between resistance and support. At levels of support is when the swing trader may look to buy, and at levels of resistance is when the swing trader will look to sell. So, in the long term you may have a stock that will be rising by a significant amount, but within that period of time the stock will experience periods of support and resistance. The stock generally will not be making a continuous rise. There will be valleys and and peaks within that, the movement of that stock, and that's where the swing trader is really able to make their money. So, this has been John Pinelli, talking to you today about swing trading."