A swing trader is a trader who looks to profit from short movements in the market. Instead of holding a stock through its ups and downs they play each swing and maximize the profit they can pull out by doing so.

These traders will use technical analysis to determine when to get into and when to get out of a stock. Technical analysis often gives signals that make it easier to determine the short term movements of a given security. It also makes it easier to determine how big the moves will be giving them a precise target.

A swing trader will often have both profitable and unsuccessful signals. To get around this they will use a strategy of cutting their losses short and letting their winners ride. The general rule that most follow is called the 2/1 risk reward system.

This means that every trade they take must give of at least $2 if they are right for every $1 that they risk. This allows them to be wrong several times and still make money in the long run. Even if they were only right 40% of the time they could still make huge returns on their money because of the great risk reward system they use.

The best thing about swing trading is that it actually works to generate large profits in the stock market. There are many traders today who take advantage of this trading system in the market every day.