swing trading is a particular trading technique, among the most used, since it is also among the most simple. Opting for swing trading or another type of trading depends entirely on the trader and how he prefers to act.
swing trading is one of the most flexible types of trading on the various markets, since it balances the defects of the other methods. Another advantage of swing trading is its simplicity, which can involve even novice traders.
The main features of swing trading are as follows:
- takes place over a time horizon of a few days, therefore beyond intraday trading;
- aims to capture the bullish or bearish oscillation of the period.
Forex is the ideal market for swing trading, thanks to the large volumes and numerous fluctuations that the exchange rates continuously experience. Swing trader is therefore the one who rides the wave and captures the sentiment of that precise moment of time.
Doing swing trading therefore means:
- identify the market phase of an exchange rate;
- understand whether it is bullish or bearish through technical indicators;
- open a position in the direction of the trend, intended to last from 2 days to a week.
With the swing trading technique you avoid the stress of intraday trading, without however running the risks of buy and hold trading, which is oriented towards the long term. Swing trading obviously also has disadvantages, since it can limit profit prospects, given the short time a position is held open.
Swing trading is the most easiest trading method to approach for novices, while at the same time remaining among the most used even in the world of expert traders. We recommend all traders, experts or not, to delve deeper into the topic by also reading Swing trading: what is it and how does it work? Complete guide.
