Swing Trading (สวิงเทรด)
Swing Trading is a trading style where you hold a position for several days to a few weeks, aiming to catch one 'swing' in price.
Swing Trading is a style where you open a trade and hold it for several days, sometimes a few weeks. You try to catch one move, or "swing", in the market. It sits between day trading, where trades close within the same day, and long-term investing, where positions can last months or years.
Swing traders often use daily or 4-hour charts. They look at support and resistance, trends and simple indicators to choose where to enter, where to place a Stop Loss and where to take profit.
Simple example
Suppose EURUSD trades at 1.0800 and you expect a rise over the next few days.
- Buy at 1.0800
- Stop Loss at 1.0750 (risk of 50 pips)
- Take profit at 1.0900 (target of 100 pips)
The target is twice the size of the risk, a ratio of 1:2. You then wait for price to reach one of the two levels, which may take several days.
Why it matters
Because trades last longer, you do not need to watch the screen all day. Price can still move against you overnight or over a weekend, and a gap can jump past your Stop Loss. In forex and gold, holding a position overnight may also bring swap fees, depending on the account.
A common beginner mistake is to open a swing trade with no Stop Loss, or to move the Stop Loss further away when price goes the wrong way.