Swing Trading Techniques to Get Targeted Profits

Forex trading offers flexibility in time, and it’s not just that not all traders can monitor the charts all day long. For those who still have a lot of work to complete or because they are busy with other activities. But to earn extra money without spending time, people are interested in trading. So, can you only play if you already have the capital?

Of course not, no matter how good you are, you still have to use a profit-making strategy according to the goal. One of them is by swing trading. What is this? Let’s discuss it together.

Learn about Swing Trading, the strategy for busy traders

When using this method, traders will close trading positions in a day or even a few weeks. Swing trading is ideal for busy traders or those with a medium to long term trading style. Just enter the market at the point of price reversal, sell or buy an asset to make big profits when the value changes in a certain direction.

Traders who apply the swing trading method will choose to wait or hold the momentum until it is time to buy or sell. When waiting for this moment, the trader does not just use estimates. However, they are ready with their own technical or fundamental analysis. The main keys in swing trading are support and resistance points, candlestick patterns and Fibonacci retracements.

Advantages of swing trading techniques

Here are some of the advantages of swing trading techniques that help you achieve target profits.

1. Emotions can be controlled

Decisions made in haste can cause negative feelings. This is not a good thing to go on if you want to make a profit. When you are busy with business, there is of course no time to watch price movements. But with swing trading techniques, you can trade without having to stand in front of a monitor.

2. Double the profit

Swing trading focuses on the movement of several candles of a higher value range. This technique is indeed suitable for long periods of time, and can help traders take profits many times over.

3. Discipline after risk management

Every trader must commit to risk management from the very beginning until the right moment appears. In the case of using the swing trading technique, the trader will allow the position to float until it reaches a predetermined stop loss or take profit level.

Weaknesses in swing trading that need attention

There is no perfect trading strategy. If a technology has advantages, there are, of course, weaknesses behind it. The trader’s role is to find ways to cover these weaknesses. So before using this technique, first consider the following points.

1. The occurrence of storage fees

Storage fees or accommodation fees can swell if traders leave their positions floating for several days. However, if the trader understands and has the mindset that this can be exchanged for the profits to be made, then this is not a problem.

2. Get bored quickly

Swing trading can be tedious for active traders, because they have to wait for the moment to come. This activity indirectly causes traders to want to see market conditions. You can even close positions faster than the initial trade target.

Thus the discussion is about swing trading method to get profit by target. Please note that the application of this technology must be modified according to your circumstances. Feel free to discuss with professionals if you are still confused because you haven’t found the best strategy. Good luck and God bless you.