The difference between swing and position trading
Swing traders are usually in a position for a short period of time - “between a few days and two or three weeks.” When I think of swing trading, I think of being in a position for over one day, but not usually more than a week or two. Basically you are trying to catch a small move in a stock.
Position trading is different because you are trying to capture most of the trend, and could possibly hold a stock for years. I guess it could also be called “trend trading,” but I don’t like that term because I also refer to my day-trading as trend trading, as I am trying to profit from stocks that make an intraday trend.
A swing trader might, for example, try to catch a move like this:
While a position trader will try to catch a move like this:
