Pullback swing trading techniques involve buying stocks when market momentum is rising quickly, and then selling those same stocks at a higher price when the market slows or begins to cool off. The idea behind pullback swings is to capitalize on short-term market movements, while avoiding long-term investments. While it is possible to make money in the stock market through long-term investments, smart investors also understand the importance of taking advantage of rapid changes in the market. In order to make money through pullback swing trading, investors must have the ability to quickly identify when a market is either increasing or decreasing in momentum. While trends tend to last for some time, a trained eye will quickly recognize the signs that a trend is about to turn in either direction. Once the market direction has been identified, investors can take appropriate action to capitalize on the market's movements. When the market is increasing in momentum, investors will typically set what are known as limit orders. This is essentially a price at which investors will buy a stock, whether the market is continuing to increase or just beginning to cool off. It is important that investors only purchase a certain amount of stock, because if the market continues to rise, the PIEL of the stock can continue to exceed the price the investor purchased it at. On the other hand, when the market is beginning to cool off, investors should set up what is known as a stop-loss order. This order will take effect when the market drops to a certain price. Generally speaking, a stop-loss order is held above the current market price in the hopes that the market will bounce back before hitting the stop-loss order, and the investor will be able to capture some of the profits from the market's movements. Pullback swing trading is an incredibly effective way to capitalize on short-term market movements. Investors must, however, be sure to take all the necessary precautions prior to entering a position. This includes ensuring that all orders are placed properly, and never risking more money than they are prepared to lose. Additionally, it is critical to remember that the stock market can be highly unpredictable, and so never investing more money than should be lost in the event of a bad trade. With disciplined trading practices, it is possible to make significant profits from pullback swing trading.