Swing Trading For Beginners - 4 Rules for Success - 投资理财

论坛首页 » 投资理财 » Swing Trading For Beginners - 4 Rules for Success

投资理财

6/4/2012

非得问
Posts: 252

Swing Trading For Beginners - 4 Rules for Success By Monica Hendrix

Swing trading for beginners is a great way to make money for novice traders its easy to understand and learn and if you follow the 4 Rules here, you will be well on your way to swing trading success.

Swing trading is a method of trading that relies on catching reactions within major trends either up or down and generally a swing trade will last between 2 - 5 days. Some forex traders try and swing trade within daily time frames but this is a recipe for disaster it doesn't work so don't even try it.

Here are your 4 rules to follow for success in swing trading

Rule 1

Use Support and Resistance

When you swing trade in forex you will need to spot areas of support and resistance on the daily forex chart. Ideally ones that have seen prices spike on high volatility are good as these tend not to last so use the Bollinger band as well as trend lines.

Generally the more tests of resistance there are the more valid it is so 3 x tests or more and two different time frames is ideal.

When swing trading in forex DON'T make this common mistake:

Many traders simply wait for the price to get close to the level there looking at and simply enter a trading signal and hope the level holds - This will lead to a swift wipe out don't hope or predict your guessing and the markets will not reward you, they will take your equity.

You need to get the odds on your side and for this you need to watch price momentum.

Rule 2

Watch Momentum

For example, when prices approach a level wait for price momentum to turn back as measured by momentum oscillators. If you are swing trading in forex or any other financial instrument this confirms your trading signal.

We don't have enough room to cover the individual indicators here but you should start with the stochastic and Relative Strength Index (RSI) and these are covered in our other articles.

Now you're in the trade the next rule involves the import but making some profits!

Rule 3

Set a Target

When you enter a swing trade profits and losses ten to come quickly. The stop is easy to place and obvious - behind the support or resistance you are looking at.

If you can use a stop close basis.

Set a target just before where you think the price is going to go and take it early.

Keep in mind you can hang on but the odds of success will decrease as you get to the target level so better to tuck it in early in case of a reaction. Although some trades will run on the odds will be in your favour more by banking early.

So there you have it a simple swing trading system that is ideal for swing trading for beginners and will work for any trader.

You may say that's too simple - but the best systems are and it's a fact that simple systems beat complicated ones, as there are less elements to break.

Rule 4

Shop Spreads

You should only trade volatile, liquid currencies when swing trading.

In the majors you should be able to get some tight spreads of just a couple of pips.

All brokers are not equal when it comes to spreads, choose wisely, as transaction costs mount up and you need to get the tightest spreads you can.

Swing trading for beginners is an ideal form of trading. It's simple to learn and can be a great addition to your forex trading strategy and make solid long term gains if done correctly and help you enjoy currency trading success.
edited by 非得问 on 6/4/2012

0 • 固定链接