We use Swing Trading in our systems. Because it dramatically reduces trader anxiety.  For general understanding, let’s discuss how you can trade stocks.  These are listed below.

• Position Trading – is where you buy or sell an asset and hold the position for an extended period.  The holding period can be months or years.  (Most would call this a stock trade because it is how stocks were always traded in the past.
• Day Trading – is where you open a trade and close it on the same day.  Movies and other entertainments have popularized this method, and it is popularized by high-risk, high-cost, rapid trading.   The suggestion is that it is not for the faint of heart.
• Scalping Trading – is similar to day trading but focuses on a vast number of trades, with each one capturing a small movement in the asset valuation.  The thinking is that this method will succeed as all the minimal gains add up.
• Swing Trading – is where you open a trade and hold it for a short period (usually between a few days to a few months).  This method is beneficial when the market is moving up and down in the short term.  It is not trading with the trend.  This method requires more attention to the trades than other methods

We choose “Swing Trading” because it is easier to follow and leaves us with less anxiety.  The trades are shorter typically 3-5 days.  It is much easier to handle these trades and we don’t need to cope with weeks or months of waiting to see if the trade has a gain.  Swing Trading is a key component of our TradeFinder Modern Trading system.