The swing trading method

In this article, we’ll explain what you need to know about swing trading Bitcoin and Forex and help you decide whether it’s the right choice for you.

Among the many trading methods which can be encountered, particularly on the Web, Swing Trading is without a doubt one of the simplest to learn and apply. Its function, based on pure logic, attracts many individual traders eager to make profitable investments on the Forex.

In fact, this method has the advantage of using only marked trends. Completing a Swing Trade actually consists of opening a position at the beginning of a bullish trend and quite simply closing this position at the end of this trend.

Unfortunately, if you look at the graphs regularly, you will quickly realise that things are not always so simple. Indeed, a general trend is often punctuated with various movements and is therefore irregular.

There are therefore two different ways to apply the Swing Trading technique.

If you are a beginner trader, it is recommended you use the simplest version of the strategy, which consists of opening and closing positions according to these movements in the trend. For that, it is systematically necessary to open when the trend goes up and close as soon as it starts a bearish movement. As you can imagine, this technique is not the most profitable and in any case, it will not enable you to make large profits, unless you simultaneously take position on several trends.

On the other hand, if you have some experience on the Forex or if you regularly consult the technical indicators of the currency pair that interests you, you can try to apply the traditional Swing Trading method by playing to the trend itself. But to succeed, it will be necessary for you to remain vigilant and especially to be able to anticipate a point of pause in the trend to close your positions before losing too much money.

To be really effective, the position that you opened must be closed just before the reversal point of the trend. To limit the risks, it is also recommended to systematically place stop loss orders, but it still imperative to remain vigilant and to regularly consult any information likely to predict a trend inversion.

In conclusion, even if the Swing Trading technique can appear obvious, it is however to be handled with caution. Indeed, this strategy is not without risk and it requires serious monitoring and an excellent knowledge of the markets.


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