5 Best ETF Trading Strategies for Beginners

4. Swing Trading

Insider Monkey Score: 7

Swing trading is a strategy where an investor seeks to capitalize on recent price momentum and anticipated short-term gains in stocks or ETFs. Unlike day trades, which are typically closed within a day, swing trades have a holding period that extends beyond a day, often lasting up to a few months.

ETFs possess attributes that render them suitable for swing trading, including diversification and tight bid/ask spreads. Moreover, the availability of ETFs across various investment classes and sectors provides beginners with the flexibility to trade in areas where they have specific expertise or knowledge. This allows them to choose ETFs based on a particular sector or asset class, enhancing their ability to execute successful swing trades.