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Aegon NV (AEG)
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A Swing is the short term fluctuation of a security. If a given stock, "XYZ" is $9.00 and the price rises to $11.00. Then XYZ starts a downtrend and goes down to $9.00 again. After that, XYZ starts an uptrend and hits $11.00. At that point, it would be prudent to realize that XYZ is bounded below $11.00 and bounded above $9.00. One would short XYZ at $11.00 and cover at $9.00. This would be called a swing trade. Swing trades are often based on technical analysis indicators. I use Parabolic Stop-and-Reverses, Bollinger Bands and Moving Average Convergence, Divergence to predict future market swings. THese trades are, by nature, very risky. However, swing trades have a high return in a relatively short amount of time (often 1-3 weeks).
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