Swing trading is a kind of forex trading that makes use of medium time frame charts such as 1H, 4H or daily charts to analyze and make profit. The swing trading can last from one day to a week. With swing trading, forex traders don’t need to trade forex within short time frame like day trading or long time frame like forex position traders do. Swing trader is by far one of the most popular types of forex traders. But as I said before: every coin has two sides; swing trading is not an exception. Swing trading is like a double-edged sword; there are advantages in swing trading; meanwhile drawbacks exist.
Advantages of swing trading:
First of all, swing trading provides much flexibility in trading time because time frame of swing trading can last from one day to a week or even longer. Thus, swing traders do not need to stay still in front of computer for several hours or concentrate themselves on Forex charts and data for a long time. Instead, swing trader can analyze the trade they want to invest, make the trade and then leave. Thus, swing trading provides much flexibility in arranging trading time. Secondly, a swing trader do not need to analyze as much as a day trader, and do not need to build multiple strategies in a single day. So forex traders are less stressful in swing trading compared with day traders. Last but not the least, swing trading uses the medium time frame, therefore, they don’t need to focus on price move all the time, thus, they have free time in learning swing trading.
Read more
No comments:
Post a Comment