Home
:: Trader Jack's No Nonsense Trading Dictionary
0-9 | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

 

home | free stock trading articles | add url | tell a friend | contact us | definitions
 

:: definitions

Traders101.com reproduces this definition here under license for your convenience.

 

  Short term Trading

Short-term trading, also known as "swing trading," means holding a position (long or short) for only a few days. The difference between this and day trading is simply that the position can be held for longer than a single session or day (i.e. overnight). Short-term traders hold a position for between 2 days and a week, and sometimes trades can last a few weeks or even months, although that usually implies a trade has become an 'investment'. Strategies used in short term trading are similar to those used in day trading, but profit targets and stop losses tend to be bigger. Likewise, leverage tends to be rather smaller. Short term trading with stocks is more feasible now than ever before, as many of the spread betting companies effectively function 24 hours a day, meaning your stops can be triggered instantly, protecting you from sudden 'out of hours' events. The introduction of 'single stock futures' has also added to the attraction, as leverage can be increased on an 'ordinary' trading brokerage account.