What is the holding period for swing trading?

Discussion in 'Trading' started by Jmm124567, Jun 6, 2013.

  1. Jmm124567


    I have seen two different definitions for swing trading that each give a different holding period. One definition says you hold a security for 2-5 days. The other definition says you hold a security for 2-30 days. I always thought with swing trading you hold a security for 2-5 days but I have come across several websites that say 2-30 days.
  2. Alexis


    Depends. 2 days for some, 6 months for others.

    Anything between day-trading and long-term, really.
  3. Days to weeks. Depends on the duration of the swing and whether you close out on a minor pullback or keep a wide enough trailing stop to ride that out.

    I am happy to ride a trend but do not think of myself as a trend follower because I don't accept the huge pullbacks that entails.
  4. Sergio77


  5. If one is looking for definitions, pick your poison.


    Trade the SWING. It lasts as long as it lasts. If there is a huge unbroken move that runs for 2 weeks, would you close it after 4 days because that happened to be one definition you read? Conversely if the swing lasts 3 days, would you hold on for 2 weeks because that is a definition you read?

    Sometimes all you need is common sense.
  6. Swing trading; my definition is trading the minor swings in a major move. (Buy the dips; sell the rallies)

    Define your objective for trading. Are you looking for a quick move? Some traders place a time stop on their trades. If the trade hasn’t hit the target in X days they close the position and look for a new opportunity.

    I prefer to let the trade run. I tighten my stop once the trade hit its initial target and trail a stop after that point.

    Take small losses and let the winners run.
  7. Anything that merits a hold overnight is in my book a swing.

    If the swing is held for too long, say months or years then were talking position trading or even investment.
  8. Lucrum


    Whatever you want it to be.
  9. More than one day, up to less than a year. I think after a year it becomes an "investment" since long term capital gains apply.

    If you buy and sell the same thing on the same day it's an intraday trade or a day trade.

    If you hold it until the next day's open it's technically a swing trade.
  10. clacy


    All trades including scalping, day trading, swing trading, position trading and investing are all trying to accomplish the same thing; which is to buy low/ sell higher or sell high/ buy lower.

    How you label it doesn't really matter because at the end of the day, you are the one who controls the difference in time which makes it a swing trade versus a scalp, etc.

    My point is you can do what you feel comfortable with. If you determine that it's easier or better for you to hold positions for 8.75 days instead of 9 days, you can do that regardless of what it's called.
    #10     Jun 9, 2013