The goal of this strategy is to capture short- or medium-terms profits.
Investment Rationale
Swing Trading is a strategy that focuses on taking smaller gains in short term trends and cutting losses quicker. The gains might be smaller, but done consistently over time they can compound into excellent annual returns. Swing Trading positions are usually held a few days to a couple of weeks, but can be held longer.
Stock Selection Criteria
- Stocks that are relatively stronger than the sector or the index for swing trading.
- Those stock which are fundamentally strong so, if we picked stock at wrong time then we can hold that stock longer.
- On the technical basis like the breakout from a range, chart pattern, important resistance and support zones, or reversal candlestick patterns.
