Swing trading is one of the most popular short-term trading styles in the stock market. It comes between day trading and long-term investing. In swing trading, you don't need to stare at screens all day and you don't need to wait for years either.
This guide explains what swing trading is, how to start swing trading and most importantly, how to find high-probability trades using proven strategies and tools.
Swing trading is a trading approach where positions are held for a few days to a few weeks, depending on the momentum or price target. Traders aim to benefit from short- to medium-term price swings within an overall trend or range.
Unlike intraday trading, positions are carried overnight and unlike investing, decisions are based mainly on price action and technical indicators. This balance makes swing trading for beginners easier to manage emotionally and practically.
Here are the differences between swing trading and day trading:
| Criteria | Swing Trading | Day Trading |
|---|---|---|
| Holding period | Trades last from a few days to a few weeks | Trades are closed the same day |
| Time commitment | Limited screen time required | Constant monitoring needed |
| Pressure level | Lower, decisions are planned calmly | High, requires quick execution |
| Market noise | Less noise, clearer price structure | More noise due to intraday volatility |
| Transaction costs | Lower due to fewer trades | Higher because of frequent trading |
| Suitability | Ideal for part-time traders and beginners | Better for full-time, experienced traders |
To start swing trading, focus on building a structured process, not random trades.
Trend following is one of the most reliable beginner-friendly swing trading strategies for new market participants. Traders look for stocks making higher highs and lows. Trades are taken in the direction of the trend, not against it. Buying on pullbacks during an uptrend usually offers better risk & reward.
Support and resistance trading works well in sideways markets where traders buy near support and sell near resistance. This approach requires patience and strict stop-loss placement and this is useful when markets lack strong directional momentum.
Breakout trading strategies focus on stocks moving out of consolidation zones, where a breakout with strong volume often leads to fast price moves. False breakouts are common so volume confirmation is important.
Reversal trading strategies aim to capture trend changes. These trades are riskier and require strong confirmation. So, indicators like RSI divergence and volume exhaustion are usually used here. Since timing is critical in these setups, consulting a practical guide to advanced trading strategies can help refine your entry techniques.
Range trading stocks move within a defined price band. Traders buy near the lower range and sell near the upper range. This works best when markets are calm and directionless.
You can often see these indicators applied in real-time scenarios in our regular stock market technical analysis updates.
Swing trading can be profitable if you follow a disciplined strategy, manage risk, stick to a process and focus on consistent small gains rather than chasing big wins.
Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The information provided in this material is only for education purposes and should not be used for public distribution and must not be reproduced or redistributed to any other person. One must consult their legal, tax and financial advisors before taking any investment related decisions. https://www.mnclgroup.com/research-disclaimer
Empower your finances with ReSach – the stock trading apptrusted by serious investors. Whether you're planning to invest in stocks, explore commodity trading, or need a financial advisor to guide you, Resach brings it all under one platform.
Start trading today with ReSach and unlock seamless investing on the go.
Name of the Company has changed from Networth Stock Broking Limited to Monarch Networth Capital Limited upon Certification of Incorporation received from Registrar of Companies, Mumbai vide certificate dated 13th October, 2015.
If you are not satisfied with the resolution provided, you can lodge your complaint online at: https://scores.sebi.gov.in/link
In case of grievance client can log on to the SMART ODR Portal, if they are unsatisfied with the response provided by us. Your attention is drawn to the SEBI circular no. SEBI/HO/OIAE/OIAE_IAD-1/P/CIR/2023/131 dated July 31, 2023, on “Online Resolution of Disputes in the Indian Securities Market”.
Purchase of REs only gives buyer the right to participate in the ongoing Rights Issue of the concerned company by making an application with requisite application money or renounce the REs before the issue closes. REs which are neither subscribed by making an application with requisite application money nor renounced, on or before the Issue closing date shall lapse and shall be extinguished after the Issue closing date. Please check your dp account for further details.
Please do not share your online trading password with anyone as this could weaken the security of your account and lead to unauthorized trades or losses.
Monarch Networth Capital Limited (‘MNCL’) | CIN No.: L64990GJ1993PLC120014
Unit No. 803-804A, 8th Floor, X-Change Plaza, Block No. 53, Zone 5, Road-5E, Gift City, Gandhinagar - 382050, Gujarat
Ahmedabad
“Monarch House”, Opp Prahladbhai Patel garden, Near Ishwar Bhuvan, Commerce Six Roads, Navrangpura, Ahmedabad - 380009
Mumbai
Monarch Networth Capital Limited, G Block, Laxmi Tower, B Wing, 4th Floor, Bandra Kurla Complex, Bandra East, Mumbai - 400051.
Email for Grievance: grievances@mnclgroup.com
Investors are requested to note that Stock broker (Monarch Networth Capital Ltd) is permitted to receive money from investors through designated bank accounts only named as Up streaming Client Nodal Bank Account (USCNBA). Stock broker (Monarch Networth Capital Ltd) is also required to disclose these USCNB accounts to Stock Exchange. Hence, you are requested to use following USCNB accounts only (Click to View) for the purpose of dealings in your trading account with us. The details of these USCNB accounts are also displayed by Stock Exchanges on their website under “Know/ Locate your Stock Broker".
Mechanism for addressing grievances and information about SCORES.
Monarch Networth Capital IFSC Private Limited (Wholly owned subsidiary of Monarch Networth Capital Limited) is a Registered Fund Management Entity (Retail) having Registration No: IFSCA/FME/III/2025-26/169. Monarch India Growth Fund will be an open-ended Restricted Scheme (Non-Retail) construed as a Category III AIF under the IFSCA (Fund Management) Regulations, 2025. Monarch AIF is a Category III AIF having SEBI Registration No. IN/AIF3/20-21/0787. This material is for informational purposes only and is not intended as an offer or solicitation or investment advice to buy or sell securities. Investments are subject to market risks. The offering is made only through official scheme documents to eligible investors under GIFT IFSC regulations. Investors should read all documents carefully and consult their advisors before investing.
Mechanism for addressing grievances and information about SCORES.
Monarch Networth Capital Limited (‘MNCL’) | CIN No.: L64990GJ1993PLC120014
(As per LODR Regulations and Companies Act, 2013)
Contact information of the designated officials of the listed entity who are responsible for assisting and handling investor grievances : Mr. Nitesh Tanwar
Monarch Networth Capital Limited
Unit No. 803-804A, 8th Floor, X-Change Plaza, Block No. 53, Zone 5, Road-5E, Gift City, Gandhinagar - 382050, Gujarat
Ahmedabad
“Monarch House”, Opp Prahladbhai Patel garden, Near Ishwar Bhuvan, Commerce Six Roads, Navrangpura, Ahmedabad – 380009
Mumbai
Monarch Networth Capital Limited, G Block, Laxmi Tower, B Wing, 4th Floor, Bandra Kurla Complex, Bandra East, Mumbai - 400051.
Phone: 022 - 66476400 / 66476405
Email: cs@mnclgroup.com
Email for Grievance: cs@mnclgroup.com
Listing of Equity Shares on Stock Exchange at
BSE
NSE
(Formerly known as Link Intime India Private Limited)
For any queries related to broking please contact helpdesk@mnclgroup.com.
‘Investments in securities market are subject to market risks, read all the related documents carefully before investing.’
