swing trading

Swing trading is a trading strategy that focuses on profiting off changing trends in price action over relatively short timeframes. Swing traders will try to capture upswings and downswings in stock prices.

Most fundamentalists are swing traders since changes in corporate fundamentals generally require a short amount of time to cause sufficient price movement to render a reasonable profit. The style of swing trading lies somewhere between day trading and trend trading:

Day trading often results in very short-term holding periods of less than a single day. Profit per transaction is often the lowest.
Swing trading often results in short- to medium-hold periods. Profit per transaction is higher than day trading but lower than trend trading.
Trend trading often results in the longest hold periods. Due to low transaction volume, profits can be highest per position.