ELI5: Explain Like I'm 5

Swing trading

Swing trading is like playing on a swing at the park. Just like how you swing back and forth, traders buy and sell financial things like stocks and currencies with the goal of making money as the price goes up and down.

When someone wants to swing trade, they usually look for things that are moving up or down in price in a short amount of time, usually a few days or weeks. They buy when the price is low and then sell when the price is high.

It's kind of like when your mom buys your favorite toy when it's on sale and then sells it for more money later on when it's popular again.

Swing traders use different tools and techniques to help them decide when to buy and sell. They might use charts, indicators, or news to make their decisions.

Overall, swing trading is a type of trading where people aim to make money by buying and selling financial things based on short-term price movements, kind of like swinging back and forth on a swing at the park.
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