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painofhell
  • Posts: 1381
  • Joined: 25/09/2016
Definition
Swing Trading is a term often employed to refer to a special method of trading in which the aim is to muster gains of a stock within a set time period of one to four days. Traders who employ this method of trading are more interested in the prevailing value patterns and drifts. The main objective is to collect the profits as soon as the market touches a certain high point.

A swing trader needs to be adept at the skill of technical analysis to formulate his strategy within a very short period of time.

The name swing trading is often used to refer to this type of trading because the currency pairs often reach their greatest potential only for a very short period of time and the trader needs to act immediately in order to be able to garner the gains.

Essentials for Swing Trading
Swing trading is not as easy as the name implies. Following are a few things that a trader should know about before deciding to take a shot at being a swing trader:

1. Knowing about the points of resistance and support

To swing trade successfully, as a forex trader, you should have a profound idea about the point from where the cost of a certain currency pair can change. This might require you to draw lines on the currency pair chart that help join and pin point the areas of highs and lows for that particular pair. This will help you have a better know-how about the times of the year and conditions that made the pair’s price reach an all-time high and an all-time low.

As you continue to research the points of resistance and support, you will eventually end at a set of conclusions that will articulate the favourable conditions and times for swing trading.

2. Test your conclusions

Draw parallels between a number of different charts for the currency pair you wish to swing trade. The difference in the time period should be constant between each chart you compare. You need to check if the areas you have marked are constant throughout the years you are analysing or not. If the areas are same in different time periods, you can convince yourself of the reliability of the highlighted areas. After that, you need to wait to see if your investments give you your anticipated results. Following these steps, you will be able to identify the time when swing trading will be the most lucrative.

3. Application

You cannot learn how to swing trade overnight. Also, you cannot just make large profits by swinging for the first time. As this type of trading involves a lot of risk, the first few times might be hard for you as a swing trader, but consistency and the right strategy will make you capable of swing trading like a forex veteran over time.
Open Account: Real / Demo
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Elijah Sebastian
  • Posts: 32
  • Joined: 25/10/2016
We need to be very careful with what technique we pick because it can make huge difference and we must make sure we learn to stick to certain techniques instead of chopping and changing because then things can really get hard and we need to be very wise with how we deal with everything. I do it all very smoothly which is easier through OctaFX broker since they are very special on all notes and that’s with having lowest possible spread from 0.1 pips for all major pairs with over 70 instruments available too, so it can really work well with any technique. Also, they have rebate scheme where I get 50% back on all trades which is even with the losing trades too.
Nathan
  • Posts: 16
  • Joined: 04/01/2022
Trading inside is very interesting. This is due to getting a regular result. Investors get results in 6-12 months, intraday traders get results every day.
Elena Watt
  • Posts: 136
  • Joined: 23/04/2020
Swing trading requires less analysis than day or long-term trading, allowing for more streamlined trading. Swing trading exposes traders to weekend market risk. Swing trading brings sudden market changes and market shocks to traders.
xyzzsdfl
  • Posts: 4
  • Joined: 31/01/2022
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Nathan
  • Posts: 16
  • Joined: 04/01/2022
It is very important that the swing trading is still supported by the conditions from the broker. The frequency of intraday transactions and a large number of transactions can only be with a reduced spread or no commission. If all these points are prescribed and observed in the conditions of the broker, then you can engage in such a type of trading as scalping. I think the conditions from ForexChief are suitable for this type of trading, the spread is low on the main currency pairs, the leverage is 1:1000 and higher, there is a cryptocurrency, algorithmic trading is allowed, the minimum entry to start trading is 10 US dollars or the equivalent in nine currencies.
Elena Watt
  • Posts: 136
  • Joined: 23/04/2020
Swing trading is a medium-term trading style used by Forex traders trying to profit from price fluctuations. This is a trading style that requires patience to trade several days at a time. Swing trading is somewhere between two other popular trading styles: day trading and position trading.
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