which types of securities are best suited for swing trading 
while a swing trader can enjoy success in any number of securities the best candidates tend to be large cap stocks which are among the most actively traded stocks on the major exchanges in an active market these stocks will often swing between broadly defined high and low points and the swing trader will ride the wave in one direction for a couple of days or weeks and then switch to the opposite side of the trade when the stock reverses direction swing trades are also viable in actively traded commodities and forex markets the bottom lineswing trading refers to a trading style that attempts to exploit short to medium term price movements in a security using favorable risk reward metrics swing traders primarily rely on technical analysis to determine suitable entry and exit points but they may also use fundamental analysis as an added filter large cap stocks make suitable swing trading candidates as they often oscillate in well established predictable ranges that frequently provide long and short trading opportunities swing trading offers advantages such as maximizing short term profit potential minimal time commitment and flexibility of capital management key disadvantages include being subject to overnight and weekend market risk along with missing longer term trending price moves 