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.
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.
If one is looking for definitions, pick your poison. http://www.google.co.uk/search?q=de...ding&ie=UTF-8&oe=UTF-8&hl=en-gb&client=safari 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.
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 hasnât 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.
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.
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.
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.