Swing trading is an active type of short-term investing. Swing traders use technical analysis to anticipate stock movement and trade based on these predictions with the ultimate goal of realizing capital gains. Unlike day trading, a swing investor purchases stocks on the market and holds them for a few days or weeks.
Swing trading is an active, short-term form of investing. It is the opposite of passive investing, which involves purchasing and holding assets for long-term profit. Swing trading stocks requires a risk-reward analysis to determine point of entry, stop loss and exit points that will result in capital gains.
Swing trading and day trading share a lot of similarities. For example, they both involve a strategy and technical analysis, and both are active investing methods. However, there are several differences to consider too. The main difference is the frequency of trades. Let’s explore swing trading vs day trading in the table below.
| Swing trading | Day trading | |
|---|---|---|
| Frequency | Multiple trades per week | Multiple trades per day |
| Costs | Lower | Higher |
| Return period | Longer | Shorter |
| Time commitment | Periodic | Constant attention |
| Trading platform needs | Can use a brokerage account | Need up-to-the-minute trading software |
Keep in mind that many active investors participate in both day trading and swing trading simultaneously. By using both tactics, you may be able to diversify your profits further. However, neither strategy is for beginners.
In general, active trading requires some kind of strategy. Your strategy may evolve over time as you become more skilled, but it’s important to start somewhere. Swing trading usually involves technical analysis to employ your strategy. Below are commonly used swing trading strategies to look into further.
Swing trading is an active form of investing that yields profits over a short period of time. If you’re ready to try swing trading, be sure to spend time gathering knowledge and developing a strategy. For those who don’t have the means to participate in swing trading, consider long-term investing instead.
Here are several ways to invest in stocks directly, without a brokerage account, plus the pros and cons of not using a stock broker.
Some of the best paper trading apps to practice stock trading with fake money include Interactive Brokers, eToro, Charles Schwab and more.
These are the stocks to buy when you don’t have much to spend.
These are the best day trading apps, according to Finder’s comprehensive analysis.
Explore the best bonuses for opening a new brokerage account.
Some of the best stock trading apps for beginners include SoFi, Robinhood, Public, Stash, Opto and more. Compare your options here.
Interactive Brokers is the best overall international brokerage account on our list, followed by Moomoo, Fidelity, Charles Schwab and TradeStation.
These are the best discount brokers of 2025 according to Finder’s comprehensive review.
We’ve rounded up stats on some of the most popular graphene stocks, along with information on how they compare and how to invest.
We’ve rounded up stats on some of the most popular oil stocks, along with information on how they compare and how to invest.