What is swing trading?
When it comes to forex swing trading strategies, there are certainly a lot of different trading strategies that can lead to success. However, swing trading has one big advantage: You don’t need to monitor the charts day in and day out.
Don’t get me wrong, every successful trader is somehow addicted to charts and will monitor them anyway, even in his free time. Yet, swing trading requires only a few trades a month, which is why forex swing trading remains one of the easiest (or let’s say, stress-free) methods to book considerable profits. Swing trading describes, in essence, the activity between day trading and investing. As a day trader, you open and close multiple positions a day and hold them no longer than 24 hours. This can be nerve-wracking and seriously affect your sleep cycles. An investor, in contrast, doesn’t care about the price fluctuations too much and plans to hold the investment for many months, several years or even decades.
A forex swing trader typically holds a long or short position for more than one trading session, but normally not longer than several weeks or a couple of months. The strategies involving forex swing trading also differ significantly from the strategies which are successfully applied in day trading. Thus, I will introduce you to one specific strategy which has proven to be very reliable when it comes to successfully trading the forex market with swing trading.
Can I be successful with swing trading?
As long as you have patience and self-confidence, you will build the perseverance which ultimately leads to success. However, success is not final. Success is the byproduct of permanent self-improvement, the seeking of knowledge and applying proven methods while eliminating fear and self-doubts.
In fact, a trader’s success depends heavily on his attitude. If he finds a very reliable pattern, which, let’s say, is profitable nine out of ten times, and he opens positions based on his expectations, he will most likely change his strategy after failing two times in a row. Problematically, constantly changing strategies is prone to failure. A trader has to stick to a certain route, once he has found evidence that it works.
What’s the best swing trading strategy?
While “the best strategy” is most likely not publicly disclosed, I can still introduce you to a very reliable strategy which has proven to be a very profitable way to successfully do swing trading. So without further ado, let’s dive right into it.
