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How to adapt to swing trading?

How to adapt to swing trading? Johannes Röll Visitors: 575 ★★★★



We often hear phrases such as high-purity, scalping, intraday, swing trading and long-term urgent trading, but many do not understand their significance. So I decided to parse specifically swing trading in this article, because I myself trade on this principle. Swing trading is a fairly new trade designation in modern trading. Specifically in the words "swing" - there are several definitions, namely: turn, wobble and scope. Swing trading - Determines the full utilization of price fluctuations per asset.


The main purpose of swing trading is to hold the position from one to 4 days or more depending on the change in price, in order to record the maximum profit from the whole movement. For this style of trading, it is necessary to be sufficiently experienced and hardened to safely hold such positions. Waiting for a big profit about the deal immediately implies an increased risk, so with a bad risk management should not try this style of trade at all. Since stop loss under this strategy will also not be small on average it is 100-200 points and with poor knowledge and use of money management you will surely deposit in the hope of making a big profit.


The fluctuation in the price of the asset is developing quite cyclically. "Swing" is part of such a cycle. The main goal of the trader is to open a deal in the direction of the main swing movement and to take most of this swing as far as possible. Swing-trading is suitable only for traders - analysts who are able to act flexibly, applying various tactics depending on the situation in the market. One or two trading systems are not sufficient for productive trade. Swing trader should be able to trade not only by trend but also in consolidation. It is correct to analyze the situation in the market in order to hold your positions. Such professionals are very few on the market, but traders who have chosen this style of trade achieve the largest results.


One of the advantages of "Swing-trading" is few amount of deals. You do not overpay excess fees, as high-stains (scalpers) do. But at the same time, this style of trading allows you to exit deals and a sluggish market without turning speculation into investment. When using swing-trading, you need a reliable forex broker, which will only make your trade easier, as clear execution of orders will be crucial in such trading. The task of the trader to enter the market in advance, before the pulse movement or on the rollback and record his profit already in the zone of climax when the wobble is already over. It is interesting to work with a brokerage company that offers minimal spreads in such a market. And the main spread must be floating.


It is also worth taking into account swap commission, so it is possible to select brokers who provide accounts swap-free. The main thing is to start acting. You can only learn swing trading in practice. Only real, done by you personally, trading transactions are remembered. Successes and failures determine the direction of further training and development of trader skills. Rest assured - everything will work out!


Johannes Röll
Johannes Röll

Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer

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