What is Swing Trading

Swing trading is a trading style in which profit is captured by the short- or medium-term movement. 
Generally in swing trading, buy or sell decisions are based on technical analysis, but in some cases it can also be done on the basis of fundamental analysis.

Example. 

ABC stock 

     

Suppose a swing trader buys 10 shares of ABC stock at a price of ₹130 each, and after holding it for 4 days, it sells all 10 shares of ABC stock at ₹140 each. In this case total profit of the swing trader is ₹100.

         Share price      No. of shares    Total value
Buy 130.                        10                        1300
Sell 140                          10.                       1400
           

            Total profit = 1400 - 1300
                                 = ₹100

Difference between swing trading and intraday trading

In intraday trading, shares are bought and sold on the same day, whereas in swing trading, shares are bought and held for a minimum of one day, and they can be held for a few days to a few months.

Time frame for swing trading

The time frame is simply the time of holding the share in our demat account for swing trade; that is, the time between anyone buying a particular share and selling it.
Generally the time frame for swing trading is from one day to a few weeks or a few months.

Risk in swing trading

Suppose anyone has taken a swing trade on the basis of technical analysis on some strategy, but the price of the share moves opposite to the predicted direction, so in this case a loss occurs. That's why swing traders only enter into a swing trade when they fully analyze their risk involved in a particular trade.