ShmoopTube

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Finance a la shmoop what are position trading and swing trading? all right well

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in the kamasutra there lives a kind of give-and-take as the oh wait that's a [Man discussing karmasutra]

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different position trading and that's something else sorry this one the way

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more boring one refers more or less to the duration in which an investor takes

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a position in a given security yes not nearly as fun so duration a megatrend is

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a long term trend that is big and fat and wide and can last decades like the [S&P 500 graph appears]

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advent of the internet a given market like a bear or a bull last a few years

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and change and things that are intermediate term like a few months to

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maybe a year are where position trading comes in like a prognosticator might [Knights carrying Ned Stark]

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give convincing data to a hedge fund that this winter will be much colder in

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high population areas than was previously predicted so he wants to

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short gas futures exposed to those areas and from the next six months that would

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be a position trade short gas.. kind of like gas X only different...So [Woman letting off gas]

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that's position trading where you're thinking about a couple of quarters in

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the future for a given investment and if you think about the original position we

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proffered if the players involved are good well it can last for an hour maybe [Man exiting a restroom]

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more now put yourself on a swing set well one swing from peak to trough lasts

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only seconds but that's swing trading position trading lasts months whereas

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swing trading lasts days..There's a shock from a bomb having gone off in the [Explosion occurs]

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middle east and for three days oil prices spiked with the world holding its

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breath thinking that this is the beginning of the end and that more bombs

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a'la Dr. Strangelove will come in other areas but then the swing trader might [Dr Strangelove on a rocket]

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make a bet that this bomb was an isolated incident a one-off or that in

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fact the headline was misspelled courtesy of the poorly schooled

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journalist who wrote it and instead it was supposed to be this headline so in

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those three days oil prices fall back to about where they were and the swing [Oil prices decrease]

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cycle is complete in our next video

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maybe we'll get into a different kind of swing...[Do not disturb sign appears on door]

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