If you are new to trading (or even if you are), you may be wondering how much time you should spend “in front of the screen”.
There’s a lot of talk in the media about “day trading” and it’s an image that often comes to mind for an ambitious home trader.
Day trading requires spending a lot of time in front of live charts, making multiple live trading options.
It requires daily monitoring and intraday trading, and must be fine-tuned to ensure that spreads and transaction fees do not eat into earnings.
Day trading requires a significant time investment.
Also, it can be difficult to execute if you try to trade while working full time, or if other obligations conflict with market hours.
So, are there any trading strategies that require less time in front of a screen?
A way to help you better manage the time between transactions and other obligations? Can your results be just as good, if not better, with less (perhaps much less) deals?
Right here; it’s called swing trading.
Elements of swing trading
Swing trading does not require you to monitor charts to execute intraday trades throughout the day. Instead, you schedule a transaction that takes more than a day (or weeks) to complete.
Swing trading is designed to take advantage of persistent medium-term volatility in long-term trends.
It is a trading strategy between short-term (intraday) and long-term (position trading).
Swing trading and long-term trading methods are not the same thing. It is often used by institutional investors, who typically hold their investments long term.
Swing trading looks for volatility within a medium-term pattern and only enters when it seems likely to succeed.
For example, on an upswing, you should buy at swing lows. On the other hand, go short at swing highs to profit from a short-lived countertrend.
The benefits of swing trading
Swing trading offers the following benefits:
It’s an aggressive style of trading, but it’s less stressful than day trading – looking at charts for hours a day and trying to make minute-by-minute trade choices can be taxing. Still, swing trading involves fewer trading decisions, giving you more time for analysis and evaluation.
It makes good use of screen time – “swing trading has a much higher return on time spent in front of a screen than day trading.
It provides time flexibility – you can do your day job as a swing trader (since you don’t have to monitor your screen for hours a day), while still managing other time responsibilities in your life (you can choose when to do yours based on your schedule for analysis and preparation)
Swing trading is a strategy between day trading and long-term position trading.
Compared to day trading, it offers the main benefits of time flexibility and lower stress as it requires less time before a trade is shown.
Like other types of trading, swing trading is difficult and requires a cautious, tried-and-true strategy that offers profit potential.
Can you be a successful Forex trader?
No matter what we do in life, there is no guarantee of success. The only thing that matters is our performance.
The same goes for trading in the foreign exchange market. As a Forex trader, who doesn’t make money? Why doesn’t he? What does a successful trader look like? There is no one-size-fits-all strategy for success in financial market trading.
It doesn’t matter what we do in life; creating purpose is the source of the road to victory. When you create a trading goal for yourself, you first define the end point of your journey.
You also need to plan the path you need to take to get that profit. This is exactly what we will discuss in the next few paragraphs.
Learn about the foreign exchange market
The first big thing about being a profitable trader is that you should find an online community that works in your favor. There’s a little concept behind why you should surround yourself with winners or people who are more successful than you.
These people are not looking for easy answers, but are eager to learn trading skills.
Learning from the experiences of others is one of the smartest ways to make your game powerful. For that, all you need is reading and research.
There is a huge amount of content on the Internet. There are many excellent books out there. So what’s stopping you?
Finding a Methodology for Success
Trading alerts should not be reproduced in any way. But of course, you should understand what other traders are doing. However, it is not the same as blindly listening to someone’s signals. In the former case, you’ll never be able to grasp what’s going on.
Suppose there is a guy or a girl or some guru who claims they know how to trade the market very well. What this person will do is, he will blindly follow the service provided. He buys anything this man sells. What is the result of this approach?
Well, here comes the real problem. When a trader lacks decision-making power, he cannot perform analysis. Therefore, learning yourself and finding ways to trust your analysis is very important for the long-term success of forex trading. Without this ability, success is unlikely to be your future.
The right way to execute a trading plan
Once you’ve decided on a system or method, test it to see if it works for you. Keep trying several different strategies until you find one that consistently yields favorable results. Then, stick with it and apply a range of tools and time frames .
Many people have successfully developed the perfect strategy for themselves. The problem is when they don’t spend any time backtesting things themselves. This obscures the whole process. Writing is a great way to stick to a plan. A better solution is to start recording your thoughts.
The importance of having the right mindset
Traders should be patient, disciplined, objective and pragmatic. He should be able to wait for the price to reach the recommended entry and exit points in the system. If the trader is disciplined in choosing trades, a short-term view may include lower risk . Last but not least, he must make judgments without letting his emotions affect them.