Short-term Trading
Short-term trading, also known as "swing trading," involves the opening and closing of a financial position (stocks, futures, currencies, options, etc.) throughout a period of time that can last a day or more.
This is different than day trading where a position is closed before the day is over. Short-term traders usually hold a positing for a few days, but it is not uncommon for trades to last a few weeks or months.
Short-term trading strategies and day trading strategies can be similar, but the allowance for losses and profits targets of a short-term trading system are larger.
Even though short-term trading can be done with stocks, the fact that the stock market is not opened 24 hours a day increases the risk of experiencing an uncontrolled loss during inaccessible market hours.
Forex trading, on the other hand, does not have this problem because the currency market is a 24-hour market, opened from Sunday afternoon to Friday afternoon (Eastern time). This provides the trader with a greater flexibility in designing and implementing a swing trading strategy.
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