The Best Way to Learn Swing Trading

By Albert Schmidt

I believe a swing-trading technique is the best trading strategy for a trader who wants to make consistent profit in his trading. It has many advantages over short-term day trading strategies or scalping systems. Just to name a few benefits of the swing trading:

1. You pay less in spreads.

If a strategy requires executing a large number of trades in short period of time then it is really hard to stay profitable. Let's say company has a spread of 3 pips. To execute 10 trades you already loose 30 pips. Profit target in scalping is usually around 10 pips. That's why I prefer to keep number of trades al low as possible while the profit target as high as possible. Swing trading techniques that last a few days will allow you to do that.

2. You will have less emotional pressure.

When you are required to monitor your trade constantly it puts a lot of emotional pressure, especially on a beginner trader. Are you familiar with a torture when price goes against your trade and ecstasy when price goes in favor of your trade? This kind of emotional roller coaster will quickly wear your energy out.

3. Part time trading.

Most people start in forex not as full time traders but they first want to test and find out if this is a right opportunity for them. In my opinion swing trading is the best strategy to start. Since it requires much less time to monitor your trades. Don't get me wrong any trading strategy requires time and dedication. To become a successful trader you need time to study the market. But once you set up the trade based on a swing technique all you need to do is to monitor your trade just for a few minutes a day.

4. Level of noise.

If you look at higher time frame charts like daily or weekly charts you will see that price patters are more identifiable that those on the lower time frame like 15 minutes, 5 minutes or even 1 minute charts. That's because random fluctuations are more prominent on the lower time frames. And it is that noise that makes a trader to make more trading errors.

So what's the best way to learn swing trading? What I recommend is to take any swing trading system that requires you to analyze the market at the end of the day and keep following it until you reach around 100 trades or until you feel absolutely comfortable spotting the signals of the system and acting upon them immediately. It does requires patience since a trade can go for a few days and some days there will be no trades. It is tempting to jump into a trade when there is no signal but you have to wait for it. So be patient to follow through your system to the letter. If you develop patience and discipline with swing trading techniques I promise you will see that the results well worth the effort.

Albert Schmidt is a part-time currency trader. After quite a long time of struggle he learned to make consistent profit trading in Forex. Review a trading strategy he successfully uses in his trading Forex.