Currency Swing Trading - A Simple Profitable Swing Trading System For Novices

Currency Swing Trading - A Simple Profitable Swing Trading System For Novices

By: Monica Hendrix

Currency swing trading is easy to learn and can be very profitable. Here we will look at how to put together a currency swing trading system which can help you build big consistent gains, even if you have never traded before.

Why is swing trading so good for novice currency traders?

The answer is - it requires less discipline than long term trend following. You get lots of trades and profits and losses are banked quickly; this suits the trader who isn't patient or lacks the discipline to sit on trades for a long time.

What exactly is currency swing trading?

Swing trading takes advantage of over bought and oversold levels within the major trends and you swing trade between these levels of support and resistance. Trades typically last a few days to a week.

Let's now look at this great way of trading and how to incorporate it in your forex trading strategy.

How to swing trade correctly

With swing trading you need to look at price momentum and determine if support or resistance levels will hold. For example, if a price comes to support you wait to see if it will hold and then take a long position and bank it before it hits resistance.

You have to determine if levels will hold and here it is important to determine if price momentum is turning up above support - this is when you want to execute your trading signal. For this you need to use some momentum oscillators.

If you don't know what they are they are leading indicators that simply tell you the velocity and momentum of price.

Great Swing Trading Indicators

Two great ones for swing traders are the Relative Strength Index (RSI) and the stochastic indicator. We use these in our swing trading strategy to execute our trading signals and it works very well. There both visual indicators and you can spot set ups instantly - there explained more fully in our other articles so look them up.

Stop Levels

When you execute a trading signal you simply put the stop behind the level you're bouncing off and then take your profit as you come into resistance for your trade.

Profit Taking

In swing trading your aim is not to hang on to the trade and trail a stop but to have a profit target and bank it - hang on to long in swing trading and your profit will disappear.

Does the above sound simple?

It is - but don't let that deceive you it works. I have been using a simple currency trading system based upon the above for 20 years and made a lot of money with it and you can to.

NEW! 2 X FREE ESSENTIAL TRADER PDFS & MUCH MORE! For free 2 x trading Pdf's with 90 of pages of essential info on Forex Trading Education visit our website at: http://www.learncurrencytradingonline.com.

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Forex Charting For Beginners - 3 Simple Steps to Big Profits

Forex Charting For Beginners - 3 Simple Steps to Big Profits

By: Monica Hendrix

Here we will give you three simple steps to making money with forex charts. Anyone can learn forex charting and it represents a time efficient and profitable way of trading.

Here we are going to look at charting the longer term trends that yield the big profits and these trends can last for week's months or years and can be very profitable.

Avoid trading low odds trades in short time frames and day trading ( the most popular method for novices) is compete waste of time, as you can never get the odds in your favour.

Be patient and wait for the high odds trades and they can't be forced and don't come around everyday.

Right, let's look at forex charting for beginners and how to pile up some big profits quickly, with a simple robust system.

Step 1

Getting a Robust Forex Trading System

The first think you need to do is construct a simple trading system and it only needs to be a few indicators, combined with support and resistance.

Simple systems work best. There more robust than complicated ones and have fewer elements to break in the brutal, hard world, of real trading.

Start with a breakout system. This is buying new market highs - it's a fact that most major forex moves start from new market highs NOT market lows.

A breakout should be past at least 2 x tests of resistance and the more the better and wider they are apart the better too.

Most traders hate breakout trading that's why its so effective - they want to wait for the pullback - but they wait in vain as the price accelerates away and their not in.

Step 2

Confirming the Trade

Once you have a breakout you need to confirm that price velocity and momentum is going to carry prices forward and here you need to learn about leading momentum indicators.

We have covered these fully in our other articles and they will help you put the odds on your side.

Step 3

Money Management

With breakout trading money management is simple - your stop goes just below the breakout point and as the trend unfolds you need to lock in profit but be careful!

Most traders make the mistake of locking in profit to quickly and your forex trading strategy must give the market room to breathe. Don't aim for perfection or trying to second guess the market; act on the reality of price change and trail your stop way behind normal market volatility.

You must learn to do the above and be disciplined or you will never make any real money.

Putting it all Together

The above sounds simple and it is. In fact, anyone can learn to trade forex the hard part is applying your method with discipline. You need to take losses and calculated profits when your charts tell you and ride the trends with discipline.

The method above works and will continue to work as it's based on sound logic and your challenge to acquire the discipline to apply it to make big forex profits.

NEW! 2 X FREE ESSENTIAL TRADER PDFS

For free 2 x trading Pdf's, with 90 of essential info and more on Forex Charting for Beginners visit our website at: http://www.learncurrencytradingonline.com

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