What Is Swing Trading – What Is Swing Trading in the Share Market Full Information

There are many types of trading in the stock market, which Swing Trading investors like more. An investor always trades with patience in the stock market.

In the stock market, people mostly do Intraday Trading and Scalping Trading. But with the right strategy and patience, people earn more money in swing trading than intraday and scalping trading.


WHAT IS SWING TRADING


So let's first know about the term Swing Trading, so that it is easy to understand swing trading.


WHAT IS SWING TRADING?


Swing trading is such trading in which shares are bought at the opening of the stock market and profit is made by selling them when the share price reaches the target.


In swing trading, the delivery of the actually purchased stock is taken. For this reason, it is also called Delivery Trading.


Let us now understand swing trading with an example.


SWING TRADING?


Before doing swing trading, we make a strategy according to which we choose the stock and then trade on it.


First of all, we will choose the stock of a company in which there is swing. That means there would be more ups and downs.


Now we will see the graph of that stock showing how much it has increased or decreased in its share price within 3 days, 7 days, 2 weeks, or 1 month.


WHAT IS SWING TRADING

Let's assume that the stock of a company Reliance fluctuates by Rs 50 per share within 7 days.


Now you have seen that the share price is going down now and now it will start increasing from here. So now you will buy the shares of that company between the opening and closing of the market.


Now one thing is to be noted here that you do not have to use margin money in swing trading.


Because if you take delivery of the shares you are buying, then you will have to pay the full amount of the share for that.


Let's say you bought shares worth Rs 10,000 for Rs 123 per share and kept the share after spending Rs 10,000 in full.


Now you have to put stop loss and target on your share. Stop-loss Put as little as possible below the price of your purchased share.


So that if the price of the share increases by more, then you do not suffer.


And now you set the target of sales according to your analysis. Let's assume that the price of your share will increase by Rs 40 within 7 days. So your sales target will be. 163 per share.


Now as soon as the price of your share reaches the target, your shares will be sold automatically and the profit will be in your account.


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