To grab your share from each market as a swing trader, having a set of tried-and-true swing trading strategies is important if you really want to maximize the profit potential.
With swing trading, you will be entering trades and looking to take advantage of the upswings and the downswings (corrective and impulse moves), which offer to earn intraday returns.
And those trades you take can last for one day up to several days and even weeks (and possibly longer if the trade is still working and you are not stopped out).
As per my experience, the majority of trades met with the take profit on the same day which is an added advantage of swing trading strategies.
Why Swing Trading Strategy
Nowadays Swing trader tend to trade the daily charts and some may even get down to the shorter time frame charts to choose a good entry or exit that can be found using price action techniques.
Like most of swing trading strategies work well on the H1 time frame as well as for the execution traders are using M15 time frame to execute swing trading ideas.
Multi-time frame analysis always brings better results for traders as some swing traders will look at the much larger time frames. Like the monthly and the weekly time frame to see what the general long term swing is.
If there is a possibility of an upswing or downswing happening as price nears major swing points. Then they will generally get down to the smaller time frames to choose the perfect entry in line with what they see on the much larger time frames.
Basic Goal of Swing Trading Strategies
Obviously, the primary goal of swing trading is to earn profits. But how is that achieved?
The goal of swing trading is for you to find stocks that are poised to make a move over the course of several days, weeks or months — not just minutes or hours — and then capture these gains by trading within the trend.
Swing Trading and Price Action
To exercise swing trading strategies in a much better way traders usually use price action techniques along with swing trading strategies.
Which make it possible to identify the confluence zones, so with the swing trading strategies trader can look for the right area to get a trading idea.
There are dozens of swing trading strategies and every strategy is not suitable for everyone. To choose the best swing trading strategy you need to analyze yourself first.
From under listed swing trading strategies you can choose one that can work well you’re your money and risk management.
I have compiled an amazing list of swing trading strategies in this website where you can browse through, study and hopefully you will pick one that works best for you.
And when you start making money with the use of these swing trading strategies please come back and share your review with others.
Before moving on to the swing trading strategies lets have a look on the tips which can be helpful while trading with my swing trading strategies.
Swing Trading Tips
If you want to be a good swing trader then learn to trade with the price action. And also consider technical analysis because these are very helpful to find the right area. The area where you can look for the trading signal while using swing trading strategies.
Always use channels and trendlines these will help you to refine your trading idea and combination of these with the swing trading strategies will bring much-expected results for you.
Learn to Trade is the Key to Success
Learn to trade against the trend. That’s a skill many swing traders take time to get used to. Many traders think that swing trading is all about trading with the trend, this is not the case.
A swing trader can take a trade that is against the trend at a swing point that he knows the price will move from there against the main trend. You will see many swing trading strategies here that will have this character.
While using swing trading strategies you need or work with the rejection. That is good to find with the candlestick patterns. Get hands-on that also have a look at these tips.
Swing Trading Power with Patterns
Learn about chart patterns-there are some specific powerful chart patterns that always bring better results on every time frame. That every swing trader needs to know, like head and shoulder which is highly successful trading setup, double bottoms which day traders love to trade, double tops where risks always pay off etc…you need to know these chart patterns.
As you explore this Forex trading strategies website, you are free to discuss your thoughts when you make comments.
Categories of Swing Trading Strategies
There are four categories of swing trading strategies which are,
1. Basic Swing Trading Strategies – These are for beginners as these are easy to understand and implement Forex trading strategies.
2. Simple Swing trading Strategies – Less use of indicators and simple effective trading strategies.
3. Complex Swing trading Strategies – More in-depth analysis and knowledge indicators required to trade these complex trading strategies.
4. Advanced swing trading strategies – These advanced trading strategies are for professional and need knowledge of price action trading, chart pattern trading, candlestick chart analysis, and Forex indicators as well
Basic Swing Trading Strategies
These are Forex trading strategies for beginners suitable for those that have just trying to venture into the Forex market.
Simple Swing Trading Strategies
These are Forex trading strategies for beginners as well as more experienced currency traders.
Complex Swing Trading Strategies
These are Forex trading strategies that may be a bit more complex but once you understand, they are quite simple.
Advanced Swing Trading Strategies
If you want Forex trading strategies that work with price action trading as well as using support and resistance trading and trend lines etc… the following list of Forex trading strategies are your best bet.
TREND FOLLOWING SWING TRADING STRATEGIES
A trend trading strategy in the context of swing trading typically means that you are trading in the direction of the trend.
Trends, as you know from across different time frames. If you pull up the longer-term trends such as the primary trends, these tend to last over years. The medium-term trends are those that range over a few months.
Finally, the short-term trends tend to span from a few weeks to a few months.
With swing trading strategies, when you employ a trend-following approach, your primary goal is to ascertain the trend.
Your job does not end there. The next question you will be asking is what stage of the trend you are looking at.
It is important to point out that in real time there is no way to tell if the trend is starting or ending or will continue. This can happen only in hindsight.
Makes Trading Easy
This is where having a good swing trading strategy can help. By combining the elements of position management. You will be able to better manage your trade.
In the world of financial trading, you might have come across the phrase that the trend is your friend.
This is quite true. The reason behind this is because when you are following a trend, you are in the majority of the trade.
So, the thinking is that you can’t really go wrong here. However, you can go wrong if you enter a trend at the wrong time.
Price doesn’t move in a straight direction. It tends to move in corrective phases. As a result, if you entered a trend-right near the start of a correction. You might have to deal with big losses.
The beauty of swing trading is that it provides many signals. You don’t need to risk a lot per signal.
You won’t second-guess yourself whether to take a signal or not.
COUNTER-TREND SWING TRADING STRATEGIES
Counter-trend based swing trading strategies require a different approach. In this case, as the name suggests you are trading against the trend.
There are some inherent risks here.
However, the risk is justified by the fact that you are able to capture some big price movements.
Counter-trend swing trading strategies are not suitable for all traders. You need to have a certain level of familiarity with the markets and also to be more risk tolerant.
Difficult to Trade
A counter trend swing trading strategy is akin to catching a falling knife, as it is usually said in trading circles.
When comparing a counter-trend swing trading strategy and a trend following swing strategy. You will find that your trades are closed out much quicker with a counter-trend following strategy.
This is because corrections are usually quick and shorter in time span compared to the primary direction of the trend.
There are also significant differences in other aspects such as position and risk management.
The biggest benefits of using counter-trend following swing trading strategies are that this allows you to capture profits relatively easily.
In terms of the technical indicators that you will use, counter trend-based swing trading strategies can employ the same set of technical indicators.
Except that instead of trading in the direction of the trend, you just trade the counter or corrective phases of the trend.
How to Grow with Swing Trading Strategies
One trade is not going to make your year or your month, but it also won’t ruin it. It relies on the magic of compounding.
The idea is to grow capital quickly by being leveraged to the hill during favorable periods and being mostly in cash during unfavorable periods.
So start using swing trading strategies today and turn your trading into a profitable one.
Comparison of Swing Trading Vs Day Trading
Everyone wish to know the basic difference between swing trading and day trading! so what is the difference between swing trading vs day trading?
Well, the main difference between swing trading and day trading is that with day trading, all trading activity happens and closes during the day.
Day trading involves making multiple trades on a daily basis, as the name suggests. Traders in day trading look to profit from price discrepancies.
And they may get into positions based off technicals, fundamentals or quantitative reasons. Short term traders or day traders look to make a living from trading securities and typically don’t hold positions overnight.
A day trader is actively looking for trading opportunities during the day. No trades are carried overnight.
Forex Swing traders are in many ways different to day traders or scalpers as well because:
Swing Trading Strategies and leverage
The Swing traders often use relatively lower levels of leverage, although this is certainly not a must, and is all up to the trader. This is the one most important reason professionals prefer to trade with the swing trading strategies.
Traders tend to use a mixture of both fundamental and technical analyses. This is the beauty of swing trading strategies as trader look on both sides.
They aim for larger price targets and tend to wait longer for a trade to develop.
To stay safe they also use wider stop losses to provide more space for the price to move up and down, and also against their position.
This also means that the day trader is generally looking for smaller profits with each trade made.
Swing Trading Strategies and Momentum
If you are suing swing trading strategies. Swing traders are looking to take advantage of momentum. They will hold their trading positions for longer periods than a day trader.
The trades can be held for days and even weeks allowing the price momentum to run its course. That means with the swing trading strategies trader only enter into a trade when market is on the move.
So ideally, with swing trading, in an uptrend for example. Traders will be looking to buy on pullbacks and in a downtrend. Traders will be looking to sell in a rally. These are the price structure or price swings that allow the swing trader to get at a better price with a good risk: reward ratio.
The key difference between Day Trading vs Swing Trading is as follows –
Swing Trading Strategies and Trade Holding Time.
A day trader buys or sells securities and liquidate the positions within the same day. While a swing trader maintains the positions for a longer period which varies from few days to several weeks.
A day trader on an average invests around two hours each day to monitor price movements in their portfolio.
While a swing trader usually invests a relatively lesser amount of time which may even be as long as weekly. With the use of swing trading strategies, trader does not need to stay in front of the trading terminal all the time.
A day trader’s day can be fast-paced and adrenaline pumping as it requires them to take quick decisions.
Manage fast-paced trading, while on the other hand. A swing trader needs to be calm. And he takes decision keeping in mind relatively long-term return.
Swing Trading Strategies and Charting
A day trader uses advanced charting systems which may be designed in very short intervals which varies between 1 to 30 minutes.
while a swing trader uses lesser complex charting systems and the monitoring can be done at an interval of around 1 to 4 hours. This is not an advantage which one can with swing trading strategies.
Then benefit of swing trading also is that you are not glued to your computer screen all day long. Swing trading will also fit those people that have day jobs.
Forex Market and Swing Trading strategies
Especially with the Forex market, you can come back in the evening and can trade as a swing trader during the different sessions.
“Michael Marcus taught me one other thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Michael taught me about making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money.” – Bruce Kovner
So Swing Trading Strategies Really Work?
While using the swing trading strategies most swing traders work with the main trend of the chart. If the security is in an uptrend, the online trader will “go long” that security by buying contracts.
If the overall trend is down, then the trader could short shares or futures contracts, or buy put options.
All of these Forex trading strategies revealed here have their own set of rules to trade and own strengths and weakness when they are on the play.
Collection of resources for you
All I’ve done is researched and compiled this Forex trading strategies resources site for you to have. Try out which Forex trading systems work for you.
When you choose and implement a simple swing trading strategy for a week time. you will love to master this field of trading with technicals.
On top of that, it’s really up to you do decide what kind of Forex trading system you want to use. A Forex trading strategy that works for you may not necessarily work for me because our personalities are different.
Swing Trading Strategies are easy to trade
As you will note, all the Forex trading strategies on this site are not complicated. As a matter of fact, the less Forex indicators a Forex system has, the better it is for you to make money.
That is in my opinion, because too much information can lead to analysis paralysis. so for your first step just choose one from the simple swing trading strategies and start your journey.
Swing Trading and Individual Traders
Swing trading setups and swing trading strategies are usually undertaken by individuals rather than big institutions.
This is because large enterprises usually trade in sizes too great to enter and exit securities swiftly. And they hold their portfolio for long time periods. However, as examples will show, individual traders can capitalize on short-term price fluctuations.
Swing trading is among the fastest way to grow capital if you learn how to properly apply its principles. Swing trading is all about velocity and opportunity cost of capital.
The goal is to stay in stocks that are moving quickly in our favor and avoid “dead money” periods.
Swing Trading Strategies Prevent Over Trading.
Having a well laid out trading plan is crucial. My plan states what market movements need to occur in order for me to take trades.
If those criteria aren’t present, I don’t trade. During periods when a trade is unlikely to develop I allow my attention to shift to some other things. I read that article, but all the while still have the market up on my other screen so I can monitor if anything is transpiring.
And in this whole course swing trading strategies played their role well.
If you trade less with a careful plan, you will make money. This is the beauty of using Forex swing trading strategies:
Benefits of Using Swing Trading Strategies
Using Swing Trading Strategies and Systems allows you to think through your trades
Teaches you patience to wait for the right trading set-ups to happen,
and even more so, allows you to focus on other things in life while the market takes care of the trades you make without
having to stare at your computer screen all day long.
This is because with swing trading, once you open a position ( a trade), your trades can last for more than a day up to 1 or 2 weeks.
When you allow the market to do what its meant to do, the market can give you a lot more profits than if you are a day trader or a Forex scalper.
General Rules to Follow with the Swing Trading
1. Always align your trade with the overall direction of the market.
2. Go long strength. Go short weakness.
3. Always trade in harmony with the trend one-time frame above the one you are trading.
4. Never trade only on the short-term chart of the swing-trading time frame.
5. Try to enter the trade near the beginning of the trend, not near the end.
6. Always apply the rule of “multiple indicators.” Do not trade on anyone technical tool or concept in isolation.
7. Keep your eye on the ball. Track a consistent group of currency pairs.
8. Always enter a trade with a clear trading plan, the four key elements of which are a target, a limit, a stop loss, and an add-on point.
9. Try to put the odds in your favor.
10. Be a “techno-fundamentalist” and integrate fundamentals into your technical analysis.
11. Master the “inner game” of swing trading. Great trading is psychological as well as technical.
How to Become A Profitable Forex Swing Trader
In the trading environment, a lot of traders are using swing trading strategies but all of them are not successful because discipline and trading methodologies to be adopted with a true heart.
There is no need to amend these strategies as these are best with the defined rules.
Pre-Market is necessary to consider with swing trading strategy.
To become a successful swing trader is not an easy task. If someone tells you to swing trading is easy, you better not believe that.
The first step to becoming a profitable swing trader is finding an effective or reliable swing trading strategy that you are comfortable in using.
Like if you are trading the London session on the daily basis then you need to sit and workout to find the trading setups one hour earlier the opening of London session this will also give you time to work on the market sentiment.
The third step is to strictly follow the rules of your swing trading strategy and this requires discipline because you should be able to follow the rules of the trading system.
When you are suffering some loses and the natural inclination would be to switch trading systems (or look for a new trading strategy) or even worse, trade without any trading system.
The fourth step is you have to manage your trading risks. Trading is risky, there is a risk of loss of your money. Remember that.
Find Swing Point In The Market With The Swing Trading Strategy.
As you know market did not move in a simple straightforward way it always creates swing and to catch those swing you need a perfect trading strategy.
Especially in a trending market, these swing points are critical points on a price chart where we can anticipate a price action signal to form.
That often provide high-probability entries just before a trend is getting ready to resume.
One of the reasons why swing trading is such a huge advantage to the retail trader is that it allows you to skip all the market ‘noise’ of short time frames.
Like those under the 1-hour chart. Brokers and the big institutional traders WANT smaller retail traders to trade short time frames and day-trade/scalp because they know they will get your money easily if you do.
Market Watch List
It is also important if you create one then you will become able to keep an eye on it constantly and will monitor it to find the trading ideas.
I believe that trader who work on the market watch list and good with the stops and targets as they remain very specific in their stop and targets. I find this good habit in swing traders they always create a market watch list.
Learn to trade with a Swing Trading Strategy and Earn a Bright Future
Swing trading sits in the middle of the continuum between day trading to trend trading. A day trader will hold a stock anywhere from a few seconds to a few hours but never more than a day.
A trend trader examines the long-term fundamental trends of a stock or index and may hold the stock for a few weeks or months.
Swing Traders are on the Edge
So i believe that swing traders are on the edge neither on the top nor on the bottom. Average holding time of their trades always remain acceptable for small investors as well. This is the reason i love to trade with the swing trading strategies.
As you go along the path of swing trading, learn from your past successes. Learn from those trades that went right and made you profits. What did you do right that got you those profitable trades? How did you manage your risk?
But also learn from those trades that did not turn out profitable. If you have followed everything by the book and the trades turned out unprofitable, then you have done extremely well. Because you have had the discipline to follow your trading system’s rules.
Volatility to Handle
Watching at volatility is key in defining a swing trade setup. Volatility is the obligation to change quickly and impulsively, especially for the worse.
In the Forex market, volatility usually implies greater risk, which means higher odds of a loss. However, risk can also lead to reward and many time much better rewards.
Best Swing Trading Strategy
As you read earlier there are dozen’s of swing trading strategies to trade with. At first your need to analyze yourself that on which stage you are like if you are in this market from previous two year then you can use advance swing trading strategies.
If you are a new one then prefer to stay with the basic swing trading strategies, and choose one accordingly.
Every trader is different and therefore each must have to explore and test the many different swing trading strategies that are available. You got to find a swing trading strategy that fits you.
Automate a Swing Trading Strategy
Withe the use modern trading software’s it becomes possible for traders o to automate anything. Once you get hands on the selected trading strategy you can automate that with your trading software.
The Bottom Line
Swing trading strategies can be a fantastic way for new traders to get their feet wet. If they implemented the proven ways. While I wouldn’t go so far as to say it’s easy, it’s one of the easier methods of trading to wrap your head around.
Many traders find the concepts easy to grasp. The reason that I find if “Proven trading strategies are there to choose”.
But, if you consider the pace, and the fact that it often rewards routine and research.
AND the potential profits, you’ll understand why swing trading is widely considered a worthwhile trading style for old and new traders alike.