Positional v/s Swing Trading

Discover why defining your exit strategy starts with understanding whether your trade is a short-term swing or a long-term positional move.

We are often asked a very simple question - What should be our Exit criteria? Our response always begins with a question of our own: What is the nature of the trade – is it a swing trade or a positional trade?

The answer to that determines the appropriate exit strategy. Without clarity on whether you're aiming for short-term gains (swing) or long-term trends (positional), it's impossible to define the right exit point. Here, we discuss the nature of positional and swing trading.

Positional Trading

A medium to long-term trading strategy where positions are held for weeks, months, or even years. Here, traders focus on larger trends, often combining fundamental analysis with technical analysis.

Swing Trading

A short to medium-term strategy where positions are held for several days to weeks. Traders capitalize on shorter-term price swings within a trend. Primarily based on technical analysis to spot entry and exit points.

Following are the key differences between Positional & Swing Trading