Forex market trading can be adapted to virtually any condition.
Traders usually choose different styles of trading due to time-based conditions.
The time-based styles included in an effective trading plan can include:
But what do they all mean? Well, let’s work our way through them.
Scalpers are short term momentum traders, who prefer to try and scalp between 5 and 10 pips from each trade they make – repeatedly throughout the day.
Scalping strategies are good for building-up smaller accounts.
Scalp swings™ are my personal term for any trading that sits between scalping and intra-day.
Both styles can be very profitable during trending periods, using scalp swing strategies.
Intra-day trading refers to day trading where intraday traders:
Swing trading involves holding positions – usually during a working week (up to 5 days).
Swing trading takes patience, so it’s not for everyone,but the profits are comparatively larger than for other styles.
Intra-week swing trading is usually done on a 4h time frame and is much more suitable for part time traders e.g. traders with a day job.
Higher time frame swing trading involves daily and higher time frame charts.
Unfortunately, the longer you hold trades – the greater the risk becomes.
So in higher time frame swing trading, unexpected fundamental news can turn the market against you and take your account with it.
For example, the Swiss Black Swan event destroyed the accounts of many longer term EUR/CHF traders within hours.
All-in-all, I prefer intra-week swing trading because:
But rather than limit your time frame choice, let’s look at all the potential benefits the general swing trading has to offer.
Signals on higher time frames are more noise-free than for other time frames and the price on H4 is more meaningful within the swing trading concept too.
Stop losses are also bigger and that allows for more movement within the trade.
Swing positions are not that susceptible to intra-day news and whipsaws either, so you can handle them fairly simply with proper trade management.
More time for analysis
Working in an inra-week timeframe, clearly gives you more time to:
Did you know that traders can benefit from simultaneously trading intra-day and swing styles?
During major market hours, you can focus on day trading and pretty much ignore your swing trading positions.
To properly do that, try placing your swing trades the night before the major market opens.
The continuous application of this cycle will allow you to have a beneficial trading mindset and behavior which leads to consistent profits, the ultimate goal of every trader.
As mentioned earlier, swing trading is an ideal trading timeframe for people:
Part-time trading swings can also be a great way to learn about Forex price action flow.
Holding long term swings may be preferable for investors who are inactive in the market on a daily or weekly basis.
However, always remember that it ties up your money and can trap you in a bad situation if the market starts to reverse.
With intra-week swing trading, your money is never fixed.
Swing trading is one of the easiest styles to learn and apply – way easier than day trading for example. That is why I use a combination of Intraday and intraweek trading – the CAMMACD system.
You don’t have to possess a huge amount of knowledge to start swing trading, but you do need to:
Cheers and safe trading,