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Swing trading is a speculative activity in financial markets where a tradable asset is being held for between one and several days in an effort to generate profit from the price changes or the 'swings'.

Swing trading attempts to capture gains in a stock / currency / commodity / indices within an overnight hold up to several weeks. Swing traders use technical analysis to look for assets with short-term price momentum.

A swing trading position is usually being held longer than a day trading position, but shorter than regular forex or CFD's trading investment strategies, that can be held for months or even years. Profits in forex trading can be generated by either buying an asset and selling once its being maximized, or "selling" and closing the position before it starts to increase back up. The most recommended indicator by brokers to analyze a "swing trading" strategy in the Forex field is the "Momentum".

The forex trader must act quickly to find opportunities in which an asset has the extraordinary potential to move in such a short time frame. You have to be sharp. Remember, the key word in the financial market, and especially in forex "swing trading" strategy is – "Timing"!

 Therefore, swing trading is mainly used by what's called a "stay home traders" & day traders. The individual trader is able to utilize such short-term asset movements with the right tools, recommendations, patient, analysis (both technical and fundamental).

Risk warning

Sounds too good to be true, right? Well, like everything in life, also in this interesting forex trading strategy, there's a certain risk that you must be aware of. Risks in swing trading are commensurate with market speculation & fluctuations. Risk of loss in forex / CFD's swing trading typically increases in a trading range, or sideways price movement, as compared to a bull market (increasing the value) or bear market (decreasing the value) that is clearly moving in a specific direction.

In conclusion, just like any other strategy in forex trading, there are few important things you simply have to remember, and rules you must follow:

*Timing is the keyword.

*Do not risk more than what you are willing to lose.

*Do NOT gamble! If you didn't analyze the market, you should not be trading.

*Trade only when there are good opportunities, the fact that you have funds available in your account – is not a good enough reason to trade, you need to wait for your opportunity, and if you are "late for the party", wait for the next one. It's better to be safe than sorry. 

Well, that question might be the most important one you should ask yourself before you actually take your first step / open a position on your live trading account.

There's really one simple rule that can answer that, and if you follow this rule (and the others of course) and you maintain it, you should be on the right way with no problems at all.

That rule we are talking about, is that you simply NEVER trade just because you feel like, or because there are funds available in your account, or only based on your guts feeling.. You only trade when there are good opportunities! The key word in the financial market is "timing", that's what this is all about.

And what exactly is that mean?

Basically it means that you have to be patient, some times there will be no good opportunities for days / weeks / months! Well, sometimes it will be better for you to wait that long and not exposing your funds to the market / put them at risk, instead of just playing around with them and eventually you might lose them. And for no good reason what's so ever.

When we are talking about "good opportunities", what we really mean is:

Market events – For example, "Apple" is releasing a new iPhone every September. No need to be a financial market genius to understand that this could be a potential trade for you. *Of course do NOT rely only on that fact, there has to be some more research + technical analysis & recommendations from your broker before you invest in that opportunity.

NFP – Non farm payroll report, one of the biggest events in the U.S financial market, could also be interesting for you.

Technical & Fundamental analysis results – After you / your broker analyzed the market, and came to conclusion that at the moment this is the best time to either BUY or SELL a position, and not a second before.

In conclusion, you need to trade only when the time is right, you start by following that rule and you should be more than fine.

It is always recommended to use some kind of "stop loss" order that you can set up in your trading platform. When your stop losses are being activated, it may feel like a huge step back, but remember that this order has prevented a bigger loss, and you have to understand and to be willing to take the losses from time to time. No one has 100% success rate in trading. Keep that in mind, it is okay to lose from time to time. If the price then comes back in the direction that you originally wanted it to go, the anguish increases even more. You will have to ignore these feelings and instead be grateful that your stop loss order has limited the maximum amount you could possibly lose, and basically saved you from the worst.

Experienced traders sometimes trade with no hard stop loss orders (also sometimes referred to as stop limit orders). They can get away with this because they are experts and because they are probably using little or no leverage. If you are a beginner – Not recommended to try these methods, know your place, take it step by step, no one was born an expert.

One of the most common mistake traders make is assuming that stop loss orders should be put in a place where they will not get hit unless the trade is a real loser. That is one way to arrange things, but there is nothing wrong with using tighter stop losses as with most breakout strategies they produce higher profits over time. Don't be greedy, one step at a time.  This is because the best trades usually spend little or no time in negative territory. However, most of the beginners cannot stand the psychological pain of trading strategies with low win rates, so newer traders can find it much easier to use stops in a traditional way.

Regarding how much you should risk per trade, you should always risk a defined amount of your capital, something that you can cover in case you are losing it, and above all – Only what you feel comfortable with. If you are using a strategy that tells you that every trade you make has the same chance of winning, then you should trade the same amount of your account on each trade. Figures of 3% or 4% are often quoted, we suggest instead that you expose no more than 1.5% per trade. This may seem over-conservative, but it gives you as a beginner the chance to trade with less pressure and worry. Losses will be less painful and easier to forget, and you will generate some experience and knowledge down the road. 

Most of the people these days are choosing to believe that Forex trading is not for everybody, and only recommended for those who learned it and has years of experience in this industry…

Well that's NOT true. Forex trading can be right also for those who has absolutely no experience what's so ever, the smart thing to do will be to start in the right way, slowly but surely, step by step, and with the right guidance, you can also be a successful trader.

Trading forex involves some risk and this fact should be taken into consideration by any trader who is planning to open an account, however, you can find a good account manager & a personal broker that will help you. After all, it is their best interest that you will be successful, that's the only way for the brokers to generate their commission – on top of successful trades, meaning that any Regulated broker you will work with, is on the same boat with you.

What you should do is read some reviews about the company you are interested in, do some research, take some academy lessons, you can also ask for a managed account, or copy other traders (Social trading) and do everything nice and slow, step by step, invest only amounts that you feel comfortable with, understand exactly what will be the risks involved on each trade, find out about the leverage and the bonus – and you should be good to go!

And remember the Number 1 rule of the financial market – You don't trade because there are funds available, you only trade when there are good opportunities! 

There are many trading strategies, and each broker uses the one he knows best / suits his clients.

Basically there are 2 ways to trade with new clients:

*Aggressive

*Conservative

When you trade in the aggressive way, you simply take a big amount of the capital and place it on 1 or 2, maybe 3 different trades. That strategy is much more relevant for traders who's looking to generate some big profits and real fast too. However, in this way of trading, you are taking a high level of risk, because if you lost the trade / didn't close it on time, you might lose a big amount of your capital from just 1 or 2 trades, but if you win, then your profits will be huge (comparing to your capital), because of the simple reason – The more you invest the more you can make.

When you trade in the conservative way, what you're doing is you expose a small percentage at a time to the market in order to maintain a strong and stable safety net in your account, depend on your broker recommendations of course, your capital, the opportunity, the risks involved on that specific trades, and how much you want to make and in what time frame. This strategy might lead you to profits much slower, but if you lose a trade or 2 then your account weren't damaged too bad.  

There certainly is no shortage of Forex brokers out there, a simple Google search will reveal as much. Although having a variety of options to choose from is deemed excellent, it can sometimes cause confusion for the beginning trader when it comes to deciding which broker to trade with. In order to address this particular dilemma, here are some key questions to ask yourself on how to select the right Forex broker.

If you ask any trader what makes a good Forex broker, you will find that they will usually have different answers. However, you will notice that many of them will agree on some things that you should be looking for in a forex broker like forex regulation in UK or the region you wish to trade, easy funding and withdrawal processes and others. The following paragraphs outline some of the most important things that you should check when looking for a broker to trade with.

Social trading has grown in popularity over the past years as evidenced by the increasing number of forex social trading websites. But what is social trading, and is it right for you?

Social trading is basically Forex trading gone “social” that is, it allows traders to socialize, communicate and interact with one another. 
Think social media and Forex trading combined.
There are different forms of social trading such as copy trading (where the traders’ live can copy and apply another trader’s trading strategies) and mirror trading (where the trader can copy another trader’s trades directly into the platform, and the platform automatically places a trade whenever the copied trader makes a trade). Whatever social trading system you choose to use, be sure to spend some time on research and reading social forex reviews so you don’t end up with the wrong choice.

If you are planning to get into the world of Forex trading, then one of the very first things you need to do is to find the right trading partner and Forex broker for you. There are certain qualities that you should be looking for in a Forex broker you intend to do business with, and one of these is regulation. 

Checked Trading Brokers

Our Guide Line

 "Trading-Bonus" was created by a community of traders, entrepreneurs and freelancers who spotted an opportunity to do the right thing in the trading community. In a world full of doubts and questions, it is important to have a single respected source of truth – and that is exactly the reason why our platform was created in the first place, to provide traders from all over the world that necessary information & guidance that will help them take their first steps in the right way. Our community of traders has been doing exceptionally well in the trading markets due to collaboration and sharing the best of practices and bonuses. In order to keep this going and for the wellbeing of you and your family, we ask you to always trade responsibly and utilize the knowledge of the best brokers & financial advisers that you will be working with. Now go, earn your bonuses and generate your profits, and don't forget to come back to tell us & the world about your experience. We care about your opinion as that will help us and other traders choose the perfect trading platform for them! Best of luck!  
 

Peter Mitchell, CEO

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Trading forex involves some risks of partial or full funds loss. This fact should be taken into consideration by any trader who is planing to make profits by fx trading.

Although there is risk when trading forex, it is recommended that traders choose a proper money management strategy.

For more information please read our T&C, and don't hesitate to contact us.

Trading forex involves some risks of partial or full funds loss. This fact should be taken into consideration by any trader who is planing to make profits by fx trading.

 

Although there is risk when trading forex, it is recommended that traders choose a proper 

money management strategy.

For more information please read our T&C, and don't hesitate to contact us.