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Currency Swing Trading - the Perfect Method for Beginners

Currency swing trading is a great way to make forex profits. Its easy to understand easy to apply and is a great way to make big profits It's a good method for novice traders to start with as it also requires less discipline than long term trend following - lets look at currency swing trading in more detail.

The problem for novice traders

Is they mostly lack discipline and getting discipline is hard especially if you want to follow long term trends, it takes a lot to follow a long term trend as open profits dip by sometimes thousands a day, sure you can hang on and win in the end - but getting the mindset right to do this is hard as you are always tempted to bank early.

Currency swing trading is the only short term method of trading that works and you are looking to catch trends of a few days to a few weeks maximum.

Swing trading is far better than forex day trading that simply doesn't work.

All short term daily fluctuations are random, support and resistance levels are meaningless, as volatility can and does take prices anywhere in a day session.

Swing trading on the other hand, takes advantage of over bought and over sold scenarios in the longer term trends and does work.

Currency swing trading is great for novices who want to be in on the action - trades come around frequently and profits and losses are banked quickly.

There are five golden rules for currency swing trading you must follow to be successful.

1. Trade Valid Support and Resistance

Generally 3 tests is the minimum, in two different time frames and the wider apart the tests take place in, the more valid the level is likely to be.

2. Confirm - Confirm - Confirm!

You don't just trade into support and resistance and hope the levels hold - you wait for confirmation. For this, you need to learn about momentum and use price momentum indicators.

If you don't know what they are or how they work, now is a good time to start.

A great indicator is the stochastic - there are many others just pick and choose 1 or 2 you like.

By using momentum, you are ensuring you are always trading with price momentum on your side - you are acting on the reality of price change and will have the odds on your side, rather than predicting or guessing which won't make you money in any venture.

3. Keep It Simple

Just support and resistance and a couple of confirming indicators are all you need. Simple systems are easy to understand, easy to apply and will be more robust in the face of ever changing brutal market conditions.

You can put together a simple currency trading system to swing trade in a couple of days - but that doesn't mean it won't be profitable - it will.

All the best forex trading systems are simple and yours should be to.

4. Take profits early

Have a target and get out early the closer the price moves to the next support and resistance, the more chance there is of a recoil against you which can eat into your open equity profit.

5. Liquidity

You should only trade volatile liquid currencies as spreads are tighter in these and the cost of doing business is less - so shop rates all forex brokers are not equal in this respect.

Currency swing trading is simple and it can be highly profitable in any forex trading strategy so try it.

Swing trading for beginners is ideal - its easy to learn, easy to apply and if you have a simple robust system, you can and will, make you big longer term capital gains.

Try currency swing trading and see for yourself how profitable it can be and you maybe glad you did.

Kelly Price

NEW! PROFESSIONAL FOREX COURSE AND FREE TRADING PDF's

For free trading guides and more on currency swing trading Course visit our website at:
http://www.learncurrencytradingonline.com/index.html

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