It’s almost undisputed that in the trading market everyone works with the sole motivation of making money, that too as much as possible. Swing trading, a short term trading method can prove a boon for people like you who wish to take a ride of the short term and medium term trends in the market as long as they last. Unlike Day trading positions, which last less than a day, Swing trading positions usually last from a few day to a few weeks. And as a Swing trader your part entails studying the trends, waiting for the right moment to take a plunge into a trend and go with the flow as long as the current is in your favor, but do care to come out just before a reversal of the trend takes place.
If you are contemplating on the merits of Swing trading while comparing it with day trading, let me give you one more point to add to your list. As the name ‘day trade’ suggests, a day trader enters into a trade and closes it before the end of the day in order to draw profit from the volatility of the market. The job is not as simple and easy as it sounds, it requires a lot of time and concentration on the part of the trader and not to forget, a considerable time with your computer.
As the swing trader you focus on the short term and the medium term trend that last from a few days to a few weeks, and trust me, it makes your life a lot easier as compared to a day trader. You don’t need to stay glued to your computer monitor throughout the day. You just have to open the charts, look for a currency pair that is providing a high probability setup, enter into a trade, place a stop loss and you are done for the day. To do all these, you might choose any time of the day that best suit you, but it is mostly done at the end of the day.
As for the next day, you have to repeat the same thing. You again check the trade at the end of the day and move the stop loss in accordance with the new market trend. Your mantra for making money in the Forex market as a swing trader should be to spot the short and medium term trends right on time, when it has just started, ride them till the trend remains, and take the exit before any reversal takes place.
Here, it is the quality of trade that matters more than quantity. And to bring this quality in your trading you only need to practice the art of swing trading. You should be able to acquire the ability of reading the charts and predict the trend changes with utmost precision. The best approach will be to look for a swing trading method that has been proven and tested and then practice it on your demo account. Once, you master it on your demo account, it’s time to start trading live with it. You can easily find many such people who, despite having regular jobs, love to spare some time to spend on trading. If you are one of those people who have a regular job but love to trade, swing trading is for you. But be mindful of choosing the swing trading method that is in accordance with your needs and requirements.