Day and swing trading

Naming trades by how long the position is held

In detail

Day trading closes out within the same session; swing trading holds for days or weeks. Shorter horizons mean more trades, so commissions and tax weigh more, and watching the screen takes time. The longer a position is held, the less daily noise matters and the more the company's actual results decide the outcome.

Example

The same stock sold after 1 day is a day trade; held 2 weeks it is a swing trade.

Related terms

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For learning, not investment advice. Decisions are your own.

StockFit · TrueNorthLabs Inc.