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Why is Swing Trading in Forex Popular?


abdulla1

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Swing trading in forex is a form of quick trading performed by investors aiming to maximize profits and minimize risks by making strategic trades that last from 3 to 30 days. This is a very popular style of trading among investors and day traders across the globe. Swing trading depends on short-term variations in the market, forcing traders to react to the changes in a rapid manner. This form of trading depends more on stress price patterns than actual value.

 

As a trader, you do not wait for currency prices to hit either high or bottom, but wait for short term fluctuations in the market. Swing trading is highly favored by day traders, rather than by large financial establishments or brokerage houses. Swing trading is most profitable when markets are stable.

 

Advantages of Swing Trading in Forex

 

The reason for swing trading in forex being popular is the many advantages it offers over other conventional forms of trading, like buy-and-hold investing and position trading. The returns tend to be higher for an average trader. You can, for instance, trade for a short while and pay your monthly bills. Swing trading is, however, subject to market fluctuations and conditions. Like all forms of trading, swing trading is susceptible to lean phases.

 

When executed properly, you will experience less risk as compared to other methodologies. Unlike conventional investors whose fortunes are tied to bulls and bears, swing traders are free to exit losing trades and step out. There is an exit strategy for swing traders. Another strategy for a swing trader is to short the market even when the market suffers a slowdown.

 

Swing traders can have a flexible schedule unlike most day traders. All you need is to do some market research after work, and place new trades the next morning when the markets open. This style of trading offers more attractive returns due to its less labor-intensive requirements. You also need not worry about:

 

•Scrutinizing financial statements like most investors

•Monitoring market crests and troughs like position traders

•See your profits vaporize before your eyes due to unfavorable market conditions

•Using complicated systems like other traders

Swing trading is popular because of the flexibilities it offers. In short, swing trading gives you the highest returns in the least amount of time.

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  • 1 year later...
  • 4 months later...

When a trend breaks, swing trading typically get in the game. At the end of a trend, there is usually some price volatility as the new trend tries to establish itself. Swing traders buy or sell as that price volatility sets in. Swing trades are usually held for more than a day but for a shorter time than trend trades. Swing traders often create a set of trading rules based on technical or fundamental analysis; these trading rules or algorithms are designed to identify when to buy and sell a security.

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  • 6 months later...
  • 8 months later...

I think that swing trading become more popular in the eyes of many traders because it is guaranteed big pips that we can earn. Even like that i don't think something like guarantee here but it is right that we could have chance to earn bigger we hold position longer, but there is compensation behind of that where we have chance to loss bigger too.

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  • 1 year later...

The answer is really simple, swing trading is popular because it is one of the strategy or technique in forex that allow you to earn in longer period which means that your earning also would be higher, i rarely see a swinger that earn less than 50 pips. I wonder what they want to with that small pips. Their target usually around 90-100 pips but i only see few who do that.

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  • 4 weeks later...

Since it is a long term trading that is why our earning bigger than short term such as scalpers for example. It is more about quality rather than quantity but it doesn't mean you alwasy get profit from it. As for the indicators you need some of them usually like candlestick or moving average or something like that, mostly use technical analysis. 

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See, i think it is something that we should reach the conclusion and it is very easy to reach it to be exact. Swing trading is popular in forex because just with one position you can get hundred pips compared to scalping where you know only reached at most 20-40 pips with one position but in relatively shorter time. Swing need higher frame because it usually hold its position for more than 24 hours.

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  • 3 weeks later...

Swing trading is popular in forex is simply because it promises big profit in the end and also some traders think long term trading is better since short term trading is closer to gambling even not always right. The other thing is long term trading requires little immediate action, where short term trading since it is short requires immediate action which not all traders can do.

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  • 1 month later...

Scalping is popular also because that is give a promise that trader earn as much as daily traders but in relatively shorter time. I don't care which is more popular now, but this swing requires more analysis since you analyze the market in long term and of course you want to decide if the price is rise and fall in relatively short or long term will need more efforts and it may lead to more losses.

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  • 2 months later...

Well like i said it before it is popular because how much profit it offers. Just imagine huge amount of profit you got after trade, it is enermous you cannot get that with scalping, it only need one trading and done you earn a lot of money, as long as you manage the risk well you don't have to worry about the loss.

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  • 2 months later...

Same here just look at my previous posts, So we are in agreement right? Swing trading is popular because you will see that most of traders who are successful when use this technique show big amount of money they get and this is make sense since the period for each open position usually last for few days.

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Hm, it seems we are reach agreement. One thing that you forget that swing trading requires momentum, but this doesn't come every day, also i find that most of traders who perform this technique is laid back i mean they are still cautious but they don't have open and close, open and close the position again, and do the same thing everyday just like scalpers.

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Thanks for the remainder, in fact that is all kind of strategy requires momentum, i trade with use scalping also needs momentum to open and close the position. Basically if you want to all the things manually momentum playing the part. Swing in fact is one of them, you can say it is popular one alongside to beloved scalping.

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But the momentum in long term trading such as swing is more way crucial and also the impact is big. SL and TP of scaling strategy is small around 5-20 pips at most. While Swing as far as i can see that takes hundred pips, some position which people hold for more than one or two weeks even more than just hundreds. So in here i said that momentum in swing is crucial @sidejob.

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  • 5 years later...

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