Forex swing trading is one of the best ways for novices to seek big gains. It’s easy to understand, easy to build a system and easy to make big gains. Here let’s look at how to build a swing trading system for success…
What is Swing Trading?
It simply takes advantage of overbought and oversold levels to swing trade into and then sometimes swing back up with the main trend. Typically, swing trades will last from around a day to about a week.
Why is it so good for Novice Traders?
It’s easy to understand the logic and it is easy to have confidence in.
You need less discipline than trend following, because you don’t have to hold positions for weeks on end which can be hard. Instead, your profits and losses come quickly and you get plenty of action.
How do You Build a Swing Trading System?
Building a currency swing trading system is easy and you need to cover these areas.
– Isolate over bought oversold areas to trade into and note support and resistance.
– Wait for prices to come off the level and to get your market timing right, use momentum indicators to give you, your trading signal. Momentum, if it falls into the level you are looking at enables you to get the odds in your favour. We don’t have time to discuss them in detail here, just check our other articles – but a couple of great ones are the stochastic and RSI.
– Once you are in the market, put the stop behind the level of support and resistance you are trading into and then look to take your profit early before the herd. Swing trading profits can disappear quickly, so play safe and bank when the odds are in your favour.
How Long Does it Take to Learn Swing Trading?
You can put together and test a system in under a week and then be making big profits in less than 30 minutes per day.
A Great Way to Earn Forex Profits
Anyone can win at forex swing trading and it’s a great way for novices to get into the worlds biggest, most exciting investment medium and enjoy currency trading success.