3 TIPS TO SUCCEED WITH BEST FOREX BROKERS SWING TRADING STRATEGY

3 TIPS TO SUCCEED WITH FOREX SWING TRADING STRATEGY
To succeed in forex trading, you must have a suitable BEST FOREX BROKERS trading strategy for yourself.

Today, I want to talk about one of the most basic strategies, swing trading. I will break down the definition of swing trading, how it works, and who should use this tactic.

This will be the first of many articles on BEST FOREX BROKERS strategies in the future on this site.

Reminder: Even if you have the best strategy in the world, you still can’t make money without a decent forex broker. Learn more about the best forex brokers now.

BEST FOREX BROKERS | ABOUT SWING TRADING STRATEGY

Simply speaking, swing trading is a type of strategy when BEST FOREX BROKERS traders keep their positions open for a very long time (up to a month). They predict the trend of the market and then set up some Stop Out or Take Profit orders in advance based on their predictions. This strategy suits people that normally are too busy to catch up with the current market in trading daytime. They only have free time at night, so they will spend hours then reading charts and news to predict the trend. Traders who have a full-time job usually choose this strategy since they have to work in the morning. Their trading time is mainly for analyzing economic conditions and market trends.

BEST FOREX BROKERS | HOW TO SWING TRADING

What to do
Swing traders usually read charts and predict fluctuation in the price. A big fluctuation, or a “swing” is what they looking for.

They only aim at big swings which will occur (according to their predictions) in a medium trading time, which are several days, sometimes up to a month.

When they think there will be a big rise, they would set orders to buy at the low area of the swing and sell it when the price rises to the higher areas.

Swing traders look forward to making use of the temporary counter-trends.

What to expect

For swing trading, traders must keep their positions open for days to look for a good swing.

As a result, they must set up larger Stop Loss orders so that the volatility of the market won’t hurt them.

In order to do so effectively, they need to have a good money management plan.

Obviously sometimes the market will go against your predictions, which will happen more than you expected.

Sometimes, there are too many small swings and you can’t find a big, good one. My advice on this matter is be patient.

Trust your analysis and instinct, unless you’re a terrible analyzer.

Don’t care about spreads when you do swing trading. Because you trade for a long time, so you have to trade big.

The amount of the money you trade will make spreads look like nothing. That’s the reason why swing traders don’t hesitate to choose pairs that have wide spreads and low liquidity.

They only need the pairs to be easy to analyse. Best case scenario, low spread and easy to analyze pairs.

BEST FOREX BROKERS | WHO IS SUITABLE FOR SWING TRADING?

  • Swing trading is good for you if you have the following qualities:
  • You can hold your trades for a long time.
  • You view the quality of your trades more important than the number of trades.
  • Large Stop Loss doesn’t scare you.
  • Patience.
  • You can remain calm when the market goes against you.
  • You shouldn’t do swing trading when:
  • You want to make small money quickly. Swing trading means a large amount after a long period.
  • You’re eager to see whether you analysis and predictions are correct.
  • You lose control easily when things don’t go your way.
  • You don’t have much time to analyze the market.
  • I hope after reading this, you can see whether swing trading is suitable for you or not and then make up your mind. If you want to know more about other forex strategies, look out for my articles in the next few days.

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