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Currency Swing Trading

admin — Sat, 07 Nov 2009 07:34:39 +0000

Definition

Currency swing trading is aimed at catching reactions within the major trend (either bullish or bearish) and seeks to take advantage of trades that can last anywhere from a couple of days, to around a week in duration.
In this respect it is a short term form of trading and is the only short term forex trading method that works.

Currency Swing Trading v Currency Day Trading

Forex day trading is attempted by many forex traders but simply doesn’t work, because the data is not valid and volatility can and does take prices anywhere in a day. Support and resistance is therefore not valid and day traders lose.
Swing traders are trading short term – but support and resistance are valid and make these moves tradable.

Spotting Swing Trades

Currency swing trading is normally carried out between support and resistance levels within the major trend. The forex trader will watch prices move into support or resistance and then take the opposite view and execute a trading signal in the opposite direction.

Confirming a Currency Swing Trade

As with any currency trading system, it is important not to simply take a position and hope that support and resistance levels hold – the trader should look confirmation. This means a waning and turn of price momentum, to confirm that support and resistance are likely to hold and then execute a trading signal.

Trading the Odds

By acting on confirmation in this way with a forex swing trading system, the trader is keeping the odds on their side and this is essential in any forex trading strategy, to win longer term.

Placing Stop Loss Orders

Stop levels are then placed behind the support or resistance level.

Taking Profits

Unlike forex trend following where a trader will place and trail a stop, a currency swing trader will operate using a target. The target will normally be just above support and resistance, that lies in the direction they are trading in and when prices approach the level, the trading profit is banked.

Volatility

Swing trading suits volatile, liquid currencies and the best ones to trade are:
Euro, Yen, British Pound, Swiss Franc, Canadian and Australian Dollar.
The euro and the yen are the two best currencies to focus on, as they offer great volatility and large volumes, which means forex brokers, offer tight spreads.
Any currency that does not have good liquidity, should not be swing traded. Liquidity is essential, for locking in profits quickly and just as importantly, limiting losses.

Commission Impact

In currency swing trading the cost of doing business adds up, as you are trading frequently and aiming for smaller profits, than you are in long term trend following. It is therefore essential to pick a broker that will offer you tight spreads (around 3 pips) to prevent the cost of doing business impacting on your profit.

Keep It Simple

Currency swing trading is very easy to learn.
All you need to use is support and resistance, a few momentum indicators and your all set. Resist the temptation to make your currency trading strategy to complicated, cram in to many indicators into your forex trading system and you will have too many elements to break and it will fail.
Swing trading systems should be kept simple, as simple systems tend to be more robust in the face of brutal market conditions than complicated ones.
All the best swing traders use simple systems and you should to.

Learn a Simple Method and apply it

If you keep your currency swing trading simple, you will understand the logic of it and it will be robust which, will mean that you will be able to apply it with discipline.
This is essential for currency trading success.
It should only take you a few days to learn a swing trading method and then you can look for profits in under an hour a day.
You don’t need to spend all day following the price action.
A good time to look for currency swing trading set ups, are at the end of the US trading day, when the NYSE closes.

Further info

Swing trading is ideal for novice traders and you can read why in our section swing trading for beginners for an idea of how to construct and apply a swing trading system for profits, we have given the basics of the way we do it in the section Swing trading in forex. Currency swing trading is a great way to build significant profits over time and is ideal for novice traders, as well as experienced pros.

Swing Trading for Beginners

admin — Sat, 07 Nov 2009 07:32:51 +0000

Swing trading for beginners is the subject of this section and we have already covered some basics of this already in currency swing trading so check it out.
Here we want to outline why swing trading is an ideal form of trading for novice traders and those who lack patience.
Many forex traders look at long term trend following in forex and think that it’s the most lucrative way to make money, after all the big currency trends last for weeks and months and if you can lock into and hold them, then you can make stellar profits.
The problem is:
Most traders are not mentally equipped to do this and cannot get the right mindset to trend follow. Swing trading can be just as profitable and for beginners in particular, swing trading is the better place to start.
Lets look at why.

Long Term Trend Following V Currency Swing Trading

The hardest form of trading to master not from the point of view of method – but from the point of view of adopting the right mindset is long term trend following as we have just stated.
If you look at any Forex chart, you will see Forex trends that last for months or even years yet, only a small minority of forex traders have the discipline and correct mindset to hold these trends and milk them for their full profit potential.
All traders want to make big gains but capturing them is the hardest bit.
If money is important to you, (as it is to most forex traders) then your emotions will be present and they will play havoc with your discipline, in you in your quest to hold these trends.
When counter trend moves come, they will reduce your open equity profits (sometimes by thousands of dollars quickly) and the losses in open equity can frighten you to take profits early.
Most traders get excited and nervous when they get a profit and the bigger the profit gets; the more tempted they are to bank it before it gets away. Most forex traders end up banking early and getting a small or marginal profit, when they could have had a huge profit.
That’s why swing trading for beginners is the best strategy to try first – it requires less discipline and is less demanding, in terms of your mindset and attitude.

Swing Trading for beginners Advantages

The aim is to catch reactions within major trends which normally last around a week and profits can be taken quickly.
Swing trading forex trends is exciting, there are plenty of trades and you know if you are right or wrong quickly – this makes it easy on the mind and psychologically better for most forex traders especially novice traders.
Swing trading is the best form of short term trading that works. Day trading sounds great in theory – but in practice doesn’t work as the data is not valid, whereas it is in swing trading.
We have all ready given the basics of what swing trading for beginners is and in this section why it is a great method to trade and can be very profitable part of your forex trading strategy.
Next we need to design a forex trading system for swing trading and this is simple:
You can get a swing trading system together in a few days – that’s robust, offers great risk to reward and is easy to understand, so you can execute your trading signals with confidence and discipline.
Now we are going to look at building a swing trading for beginners system – so click the link here swing trading in forex and let’s get started.

Swing Trading in Forex

admin — Sat, 07 Nov 2009 07:30:27 +0000

Building a Swing Trading System in 4 Simple Steps

If you do not know what swing trading in forex is, check out the background at currency swing trading and if you want to know why its one of the easiest forms of trading psychologically, check out our section swing trading for beginners

Here we are going to look at swing trading in forex from the standpoint of building a simple forex trading system, based on catching swing trades which is easy to understand, easy to apply and even better, can make big forex profits.
Here is your guide to a swing trading in forex with a system designed to make regular capital gains, whilst at the same time keeping losses to a minimum

Step 1 – Spot Support and Resistance

You need to use trend lines and spot areas of support or resistance to trade into.
Look for 3 tests or more – the more tests there are of course, the more valid and important the level will be.
Now you have spotted the opportunity, you need to time your trading signal and correct timing is crucial to success.

Step 2 – Trade with Price Momentum

Many traders simply like to go short into resistance or long into support, as it’s tested but this will never work.
If you do this, you are guessing or hoping the level will hold and the market will not reward you for this.
You don’t have the odds on your side and you will end up a loser.
With swing trading in forex (or any other method of trading for that matter) you need to trade the odds and get them in your favor and this means getting confirmation. You need to trade with confirmation of price momentum on your side BEFORE you execute your trading signal.
You therefore need to wait for a test of support or resistance.
Then Wait
Watch for the currency to turn away from support or resistance with accelerating price momentum and THEN execute trade.
You are trading with price momentum and the odds are in your favor.
Sure you won’t catch the turn exactly and you miss a bit of profit – but if you trade this way and grab 60 – 70% of the potential overall profit, you will make a lot of money and this is the aim of any forex trading system.

Which Indicators Are Best?

Try these:
The stochastic and the Relative Strength Index (RSI) as a good pair to start with.
We don’t have enough time to explain them in detail here – but these are superb momentum indicators.
There are many others – just pick and choose a few you like best but don’t use too many – up to 3 is fine.
When swing trading in forex, your system should be simple and robust – if you complicate it you will lose, as there will be too many elements to break.

Step 3 – Stop Reverse on Breakouts

For example, if you are trading into resistance that is at a market high, you may want to use a stop reverse upon a break.
Most major trends start from new market highs NOT market lows.
If prices break out go with the break.
The initial breakout of strong resistance, will see stops hit and new trend followers kick in and by taking the turn, you can go with this momentum.
Be careful – you should only do this into strong resistance that is considered valid by the market participants. This will ensure you don’t get caught trading false or weak breakout trades.

Step 4 Take Profits Too Soon

When swing trading in forex, your profits can disappear quickly, so you need to make sure that you get them in the bank, when the risk reward is in your favor – before recoil in price sets off a counter move.
Take your profits early and by this we mean.
BEFORE they test the next level of support and resistance.
Your aim is to “hit and run”, the closer the trade moves to a target the more chance you have of a reversal so get out early. You may miss some of the move – but as we said earlier (on getting into the trade) that doesn’t matter – your aim is 60 – 70% of the overall profit potential.
If you can do this regularly, you will make you a lot of money and ensure your forex trading strategy is successful over the long run.
Other points in relation to a successful swing trading method we covered earlier in other sections – but their important so to repeat:
Only trade liquid, volatile major currencies and pick a broker that offers you tight 2 – 3 pip spreads, so they do not impact on your overall forex profits.

A Simple Way to Make Big Profits!

Swing trading in forex is simple to learn, easy to apply and requires far less discipline than longer term trend following. It’s also exciting, fun and ideal for either novice traders or seasoned market veterans – learn and enjoy forex swing trading today

Achieving Success

admin — Sat, 07 Nov 2009 07:10:57 +0000

If you have read the other information we have provided on this site you will understand that – Forex trading is simple to learn, and anyone can acquire the skills to trade successfully.
So, the obvious question you may ask is why do 95% of traders lose money?
Many traders lose because they have poor methods, however many have good methods but still lose. The reason for this is – they lack the correct mindset to succeed.
If you want to win at Forex trading you need the right knowledge but you also need to have the right mindset, if you don’t you will lose.
Here we will take a look at how to adopt the correct mindset the millionaire traders have and you need too. If you can acquire them, you are on the way to achieving currency trading success.

1. Desire and Passion

If you want success in anything in life – including forex trading, then you must desire success. If you have desire, then you’ll do what’s required to succeed. If you look at any of the legendary traders, they all had desire – and they loved what they did with a passion.
Currency trading success requires effort, as the rewards are immense – if you have the desire to succeed, you will acknowledge this and put in the required effort to succeed and make no mistake – the rewards for your effort can be life changing.
So if you have the desire and passion to succeed then chances are you will. Now lets look at how to channel this desire and passion, to become a successful Forex Trader.

2. Work Smart Not Hard

If you have read the Forex Education section – you will have read about “the turtles” – a group of people who had never traded before but learnt to do so in 14 days and went on to make millions.
They did this by working smart, NOT hard – and there is a big difference.
In many jobs you get paid for the effort you put in. When you trade FOREX you earn your reward simply for being right.
When you learn currency trading focus on working smart and acquiring the right knowledge and ignore all the Forex Myths which cause the bulk of traders to lose.
If you work smart, you can learn to trade in just a few weeks and in under an hour a day, you could soon be piling up big consistent profits.
The key to trading success is to have confidence in what you are doing – this leads to discipline and ultimate trading success. Let’s look at this in more detail, as most traders never acquire these traits and lose.

3. Confidence

You hear traders talk a lot about discipline being a key to success in currency trading – but you don’t hear them talk so much about confidence. However, confidence is a vital ingredient when implementing any successful forex trading strategy.
We are involved in Forex Education – we can give you the tools you need to be successful – BUT you need to learn them and have confidence in them YOURSELF.
To have confidence, you need to understand exactly how and why a forex trading strategy works and will continue to work.
This is essential when you hit a losing streak (all traders have them even the world’s best traders, so you need to be prepared for them) you need to have the confidence to stick with your forex trading system and trade it with discipline through losing periods, to ultimate long term trading success.
If you have confidence, you can acquire the key trait all traders need:

4. Discipline

Discipline is the key to forex trading success.
If you don’t trade your method with discipline – you don’t have a method at all!
It’s not as easy to trade in a disciplined fashion as many people believe, but if you take the time and trouble to learn a method and have confidence in it, then you will be able to trade in a disciplined fashion.
If you trade with discipline, you will be doing what 90% of traders don’t do and you will have a trading edge.
Discipline comes from all the points we have discussed earlier:
Desire, knowledge and confidence which give you the inner belief to follow your trading method and execute it in the correct manner for long term trading success.

Success From Within

People like ourselves can help you achieve currency trading success, by giving you the tools however, the ultimate person who will determine how much money you will make is you!
Fact: Anyone can learn forex trading and anyone can become a successful trader.
Forex trading is a challenge, its exciting, it’s fun and can offer you an income that other people only dream about so, Are you ready for a challenge and do you have the desire to succeed?
If so, welcome to the world’s most exciting business opportunity!

FOREX Trading An Opportunity For ALL

admin — Sat, 07 Nov 2009 04:33:33 +0000

FOREX trading is one of the few ways to start with small stakes and build wealth quickly. The good news is that everything about successful Forex Trading can be learned by those willing to put in the time and effort.
If you want proof of this go to the Forex Education section where you can read how a group traders with no previous experience learned to trade in just 14 days and went on to make over $100 million!
So why is trading Forex so lucrative? Let’s take a look…

1. Leverage

Leverage is the ability to trade more funds than you actually have and if you use it correctly, you can make huge gains and build wealth quickly.
For example, if you deposit $5,000 with a FOREX broker they will allow you to trade with a leverage of at least 100:1. This gives you the ability to trade $1 million and considerably enhances your profit potential.
Leverage of course can work for or against you.
If however you can keep losses small and run profits then you can build wealth quickly
A PROVEN Forex trading system with good money management, combined with leverage, is the secret of making long term capital gains.

2. Profit Opportunities in Bull or Bear Markets

As one currency rises another must be falling and vice versa, this gives profit potential in ANY economic climate. Currencies are volatile and trading opportunities emerge somewhere in the world every day.

3. Currencies Trend

Currencies reflect the overall health of a country’s economy and these economic trends last for months or even years. If you can spot and lock into these long term trends, you can build significant long term wealth.

4. liquidity

The currency markets are the world’s largest investment medium and trillions of dollars are traded daily. This volume of transactions and liquidity means traders are able to open and close positions quickly, to lock in profits, or cut losses.

Turning Opportunity Into Profit

Forex trading is perhaps the ultimate home business and has more profit potential than any other including:

You can trade from Home in just an hour a day
You only need a computer and an internet connection
Money you invest in your business can be leveraged 100 times or more
You don’t need staff or stock and you don’t need to market your business
There is never a bear market
There are opportunities all the time to make profit
Anyone can learn this business
You can take holidays when you want
You can build wealth quickly

Turning Potential Into Profit

Of course you have to turn the above potential into profit and you need a plan and proven tools to get the odds in your favor – If you have the right attitude to achieve success and a willingness to learn, you could soon be building wealth in the world’s biggest and most exciting business.