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Swing Trading - The Best Way to Trade Forex?

Ideal Trading

Swing trading can mean a lot of things. So, a definition is a good place to start. I call anything swing trading that doesn't require you to look at your trades more that several times a day at most.

That's the whole point. Check the market. Put on trades if the market warrants it. Shut off the computer and get on with your life. Sounds good to me.

Timeframes

Usually you wouldn't try to swing trade on anything less than a 1 hour chart. I prefer the 4 hour chart myself. If I had more patience, I would trade the daily chart. However, anything smaller than the hourly charts, and you are starting to get into the market "noise." Trends and breakouts are much clearly the slower the timeframe. Why not take advantage of that?

Does It Fit You?

The thing about swing trading is that it can definitely get boring. You see, you might come upon a stretch where for a week or more, no trades present themselves. Do you have the patience to watch and wait? Or will you jump into the market? Don't answer the question. You really don't know until you've been there and done that.

However, don't go running to day trading if you're having trouble swing trading. First, day trading is harder. Second, just like swing trading, you will have dry spells in day trading too.

Your System

Of course, you need to have a system or methodology. I'm not going to discuss it here as I've already got a page devoted to it. For a very important bird's eye view of the process, have a look at my forex trading system page.