What Is Swing Trading And How Can I Utilize It?
Trading has become one of the best ways to make money from home for a lot of people.
For people starting out in trading, choosing the right strategy that suits their schedule and budget is vital, as this will ultimately give them better results in terms of making trades that will end in gains instead of losses.
Swing trading has become popular for a lot of part-time working traders – and I find this to be one of the more lucrative strategies that can be utilized to make money from trading activities.
Today i’ll discuss a very common question – what is swing trading, and how can you use this strategy to maximize your profits.
As a mother and wife, I understand how difficult times can be.
You do not want your husband to be the only one who brings money to the table at home – you want to do your share.
Unfortunately, a simple office job didn’t make much of a difference at the end of the day (at least not for me).
That is why I decided to delve into some strategies to help me get a few extra pounds (bucks for you on the other side of the pond) that I could bring to the table each month.
After discovering trading as a way to profit from home, I did notice that researching different markets and setting up my own strategies was very time-consuming.
I often didn’t have enough time on my hands to set up trades, which is probably why I lost some money in the beginning.
However, once I discovered swing trading, however, things changed for me.
I am now able to initiate a trade and profit a few days later, with only an hour or two each day spent on doing some research on the markets that I have decided to trade in. I’m not saying you’ll get there immediately, but with consistent action and a bit of help, I believe it is possible for you.
In this post, I want to help you understand how swing trading can be an ideal solution for you to get started with if you do not have hours on hours each day to keep an eye on markets that you are trading in every five minutes.
Swing trading is less time consuming, but you do need a little more patience – if this works for you, then continue reading to learn how exactly swing trading works.
What Is Swing Trading?
Let’s start by considering what exactly swing trading is and how this particular type of strategy works.
For many people who are only getting into the industry and trying to do a couple of trades for the first time, the term may still seem foreign.
Swing trading is a strategy that utilized longer-term approaches to forex trading than your average day trading strategies, but it is a shorter-term solution compared to investing in stocks, for example.
With swing trading, a trade will be made, and then the position will be maintained for a few days at most.
Some people would end their position after just one day, while others will rather maintain their position for about six days in order to get the maximum potential out of their trade.
There are cases where people may hold their position for longer, with a maximum recommended time of around two weeks at most.
Even though a more appropriate solution than day trading for people with busier schedules, it is important to realize that swing trading strategies still demands a great deal of research in order to assure successful trades, as well as to minimize your losses.
You will need to do thorough research on a specific market and identify an appropriate time to initiate and stop your trade.
The goal behind each trade made using this strategy is to gain profit by taking advantage of a swing that occurs within the specific trading pair that you have invested in.
How Much Should You Invest In Swing Trading?
A lot of people who are interested in swing trading are not sure how much money they should initially invest in order to turn over a profit.
It can be a little tricky in terms of swing trading since the commissions that are charged by the platforms that allow you to initiate such trades can sometimes be on the high side.
With each trade you make, you may end up losing as much as $100.
This is something that you will need to face.
On the other hand, a successful trade can bring in even more profit.
It is generally advised to start with a minimum of $5,000 if you wish to become a successful swing trader.
Many people go as high as $10,000 as an initial investment in order to make a more substantial amount of profit.
These will often not fall into the budget of many people looking to get started.
There are a couple of trading platforms that will allow you to make much smaller investments – sometimes as low as $100.
This, however, may not be a profitable way to go about the process and you should note that it may take you a significantly longer amount of time before you are able to see some real results.
Who Is Swing Trading For?
Before you decide to become a swing trader and make an investment into this type of strategy, you should understand what swing trader holds and demands.
And also consider whether or not you would make an appropriate person for this type of strategy.
First of all, you need patience if you are planning to become a swing trader.
If you do not have patience and you want results on the same day that you are going to initiate a trade, and a swing trading strategy might not be an appropriate option for you.
You might want to look into other strategies that can give you faster results – You’ll like Day Trading or scalping.
With swing trading, you are going to initiate a trade, and you will then be required to hold your position on that trade for multiple days.
Sometimes even longer than a week – in order to gain a profit on your investment.
If you decide to invest your time and money into a swing trading strategy, then you should also understand that you will be making less frequent trades compared to a day trading strategy.
You will be making a few trades, and you will be holding on to them for many days at a time.
You’ll most likely end up making a single trade at a time when you are only starting out to help you get the hang of things as well.
If you find that you do fit the above-mentioned points, then swing trading can be an ideal option for you.
You do not need to monitor the performance of your trades constantly.
All you need to do is conduct some research in the evening before you go to bed in order to check up on the trading pair that you have invested in so that you can identify the possibility of a swing at the right time and end your trade.
This way, you’ll end up gaining profit instead of running a loss through the trade that you have initiated.
Where To Get Signals For Your Swing Trading Strategy?
While everything may seem relatively easy with swing trading and this might seem like the best option for you, once you sit down with the charts before you, you might not know when to make a trade and which pairs you should choose.
Fortunately, there are ways that you can get signals – a signal is basically a prediction on a future trend that has been discovered.
When you get a signal, you can make a trade and, depending on the accuracy and quality of the signal, gain profit from your action.
While there are many applications out there that can be used to get signals on trades that can help you boost your profits, I personally recommend Rapid Trend Gainer.
You can see my Rapid Trend Gainer review here.
This is a piece of software that plugs into your existing trading platform and will then analyze your charts in order to provide you with highly accurate signals.
Once a signal is detected, Rapid Trend Gainer will send you an email, as well as a push notification to your mobile device.
This way, you won’t miss out on a signal that could help you gain hundreds of dollars in profits.
Rapid Trend Gainer uses a unique algorithm that the developers behind the piece of software have coded in order to bring you signals that will help you gain more profits, instead of losing money.
The software also comes with a guarantee – you are given a refund if you find that the software is unable to help boost your profits through a swing trading strategy.
While trading can be a very lucrative opportunity, without the right strategy that fits with your budget and schedule, you could end up losing more than you can afford to lose.
Swing trading is an ideal option for people who find that their schedules do not allow them to check markets and the status of their trades multiple times a day.
The strategy is effective when you do your research and can ultimately help you gain large amounts in profits.
You can also see my most popular trade set-ups here – this is a good place to start if you’re interested in learning more on swing trading.