Swing trades can last from anywhere from one day to several days or even weeks. Typically swing traders try to catch price retraces or trend reversals using indicators or price action to help tell the tale of the tape. Using swing highs and lows from recent price action traders use these points of reference for placing their entries and exits.
The pros of swing trading include it tends to be easier to manage trades than day trading as well as more traders are profitable as swing traders. The spread has less of an impact than it does on intraday trading therefore traders do not waste money on broker commissions.
The downside or cons of swing trading is that traders can get emotional attached to their trades and expected outcome allowing trades to spiral out of control and turn what should had been a small loss into a large loser.
Otherwise known as the buy and hold method, position trading is known as a trend trading style where traders build themselves into large positions over days, weeks and even months trying to profit when the market is trending. Often traders are able to get themselves into a snowball situation when the markets is running with them.
