Swing trading isn’t the only kind of trading that traders have available to them. There are many different ways you can trade a market, no matter if you trade the stock markets or dabble in the ever growing FOREX market. With such risk involved in trading, it would be in your best interest to take some time and find out which style of trading offers the best and safest return on your investment. Such a style that offers this is that of swing trading and it can be applied to any market.
Swing trading is the best form of trading for two reasons. The first being that you do not need to be glued to your monitor 24 hours a day watching and waiting for a suitable trade setup. Many people become obsessed with trading and watch their charts day in and day out. This is more often than not detrimental to you and your trading capital. For the majority of traders, this results usually in a loss of time and a loss of money. How well you perform at trading is not dependant on how many hours a day you watch charts. You don t need to spend 8 – 10 hours each day watching charts waiting to pin point your entry. Swing trading is a style of trading that allows you to spend as much or as little time in front of the screen as you want. Entries and exits do not have to be so precise that you must wait in front of your screen for the precise moment to enter.
The second reason swing trading is the most suitable form of trading is that it offers you the lowest level of risk. Unlike many other styles of trading, swing traders see the big picture and follow the smart money in the market. They typically trade 4 hour and higher charts and thus can see where the predominant trend is heading. People who trade on the lower timeframes watch charts clouded in noise and their trading systems typically generate many false signals which need to be filtered out. The trends they see may only last minutes or hours and this makes it very difficult to profit from these short term trends. Swing traders identify and trade in the direction of major trends which can last days, weeks, months or even years. By being able to trade in the direction of these major trends, returns on your investment are increased greatly while the chance of a loss is reduced significantly. This makes swing trading extremely profitable while the lowest possible levels of risk that can be found in any trading style.
Each person has their own style of trading, but if you are looking to gain an edge over the markets, no matter the market you trade, then swing trading should be something you look at. Less stress and being able to identify major trends which help increase your chances of pulling the trigger on a winning trade make swing trading the smart choice for traders.
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