What type of trading involves holding positions for several days or weeks?

Swing trading is characterized by holding positions for several days or weeks, making it distinct from other trading styles. Traders who engage in swing trading typically aim to capitalize on price movements or "swings" in the market. By holding positions over short to medium-term intervals, swing traders can benefit from the volatility that occurs within this timeframe. This approach allows traders to analyze short-term trends and patterns, using technical analysis tools to make informed decisions about when to enter or exit trades.

In contrast, scalping focuses on making numerous trades within a single day to capture small price fluctuations, while day trading entails buying and selling securities within the same trading day without holding positions overnight. Position trading refers to a longer-term investment strategy where traders hold positions for weeks, months, or even years, typically based on fundamental changes rather than short-term price movements. Thus, swing trading effectively balances these various strategies by targeting intermediate price movements within the market.