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Swing Trading as Forex Strategies

 Forex Strategies

Swing Trading as Forex Strategies

One of the forex strategies that you can use is swing trading and you need to know more about this strategy.  Swing trading is considered by a lot of traders to be a great in-between strategy for traders not wanting to trade short-term or long-term.  This medium-term strategy is the ideal for people looking for a fundamental and technical strategy.

What is Forex Swing Trading

To be successful with any trading strategy you have to choose the right currency pairs to trade.  Certain currency pairs work well with short-term trading like scalping while other work well with long-term trading like fundamental trading.  The best currency pairs for swing trading are those with high volatility.  When the market is active the currency pairs should swing between defined highs and lows.  Swing trading is all about riding the waves in a single direction for a number of days.  The only time you close the position is when the currency pair trend swing in the opposite direction.

The Right Market for Forex Strategies

The forex market has times when it is trending and times when it is ranging.  You need to identify which conditions best suit your trading strategy.  Day trading is best during trending markets because the large movements allow the trader to make a profit.  However, long-term traders actually need to have a range market because they are looking for a slow build up of profits.

The swing trader actually needs a range market to be successful.  The fact that all the trades last longer than a day means that they cannot make money off the short-term trends in the market.  The indicators that the swing trader uses only trigger during range markets which covers 80% of the market open times.

The Tools You Need

All traders need to have their trading tools that help them identify when to enter the market.  The swing trader uses technical and fundamental analysis to find indicators.  The fundamental analysis helps them identify when a swing in the market may comes.  This is generally centred around high impact news.  The technical analysis of the hourly, daily and weekly charts allows them to find their entry and exit points.

The technical analysis methods which are used often include Bollinger Bands and moving averages.  Many swing traders also use MACD charts to help identify waves in the market.  There are different strategies within swing trading that use different technical analysis methods that you should know about.

When to Take Profits

Swing trading works in the channels created by the technical analysis.  Most swing traders take their profits when the trend is close to the upper or lower channel line.  The exact point can be determined through technical analysis.  There are many swing traders who only use a vague area for their exit point instead of a precise number.  Of course, these traders do have very solid stop loss points in case they wait too long to take their profits.

Swing trading is something that traders should consider if they do not want to use day trading or fundamental trading.  This trading style combines fundamental and day trading to create a medium term trading solution.

 

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How to Survive the Forex Trading Game

Forex Trading

How to Survive the Forex Trading Game

There are a lot of people who consider forex trading, but there are not that many who actually make it in the market.  It is important that you know how to survive the forex trading game.  To survive you have to know about the different traders and where you fit in.  You should also know what you have to do to survive and dodge being sunk by the other traders.

The Major Players

The first step in learning to survive the forex trading game is knowing all the players.  There are certain traders who are heavy hitters and other that are not.  The major players on the market are banks, companies, and hedge funds.  These traders are considered major players because of the large volumes of currency that they trade.  When these traders feel that the market is going in one direction they can cause the trends.  The large volumes of currency that they are trading actually move the markets.

Where You Fit Into Forex Trading

The average person who is trading forex will be considered a retail trader.  Retail traders do not have any impact on the market on their own.  If you have a large group of retail traders they can carry trend momentum, but it is impossible to organise enough retail traders to move the market like the major player do.  Retail traders simply make a profit off the movements on the market caused by other factors.  When traders understand this they can easily survive forex trading.

Knowing What to Do

Once you know where you fit in the trading world you need to know what you should be doing.  The best way to find out about this is to go through training.  There are many different training courses online that you can do for free.  You can also sign up to mentor programmes to benefit from the experience of an expert trader.

When you look at training you should look for courses that cover certain points.  These points include how to complete technical and fundamental analysis, the trading terminology and some trading strategies.  You should get an overview of different types of long, short and medium-term strategies so you can find the right one for you.

Your Mentality

One aspect of trading that causes a lot of trader to sink in the market is trading mentality.  If you do not have the correct mental trading space then you are unlikely to do well on the market.  This mental space needs to be logical and disciplined.  You cannot allow emotion trades to be completed because this usually ends in losing money.  Of course, you should not be completely emotionless because the best way to control emotions is to acknowledge that they are there.

Your trading mentality needs to keep you trading with your strategy.  You should use a trading system that you are comfortable with and feel confident in.  If you are happy with your system then you are unlikely to deviate from it. When traders deviate they are more likely to open a bad trade and lose money.

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Get a free Forex PDF PLUS:

  • 14 Video Lessons
  • Free One-on-One Training
  • A 5000$ Training Account
  • In-House Daily Analysis
  • Get FULL ACCESS
Become a forex trader!
Read More →
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