• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
Dinks Finance

Dinks Finance

Personal Finance By and For Couples

  • Facebook
  • Pinterest
  • RSS
  • Twitter
  • Smart or Selfish
  • Couples Finance
  • Make Extra Money
  • Build Wealth
  • Blogroll
  • About

Learning to use the swing trading strategy

February 2, 2020 by Susan Paige Leave a Comment

The swing trading method might be the most complicated and boring strategy in the Forex market. To trade Forex by using the swing trading strategy, you should have a strong technical and fundamental knowledge. The naïve traders in Hong Kong can’t find the endpoint of the market retracement. They are always predicting the market trend based on complicated assumptions and losing money. On the contrary, trained professionals at Saxo are using their in-depth knowledge of trading and executing random trades to earn more money.

Today, we are going to learn about the best practice to learn the art of swing trading method. Before you start learning this strategy, let’s discuss the pivot point to make things easier.

Pivot points in Forex

Pivot points are the critical price reversal point. You can consider them as the support and resistance level also. Most of the time, the market tends to end its correction at the critical pivot point. The position and swing traders use these pivot points to find the potential buying and selling zone.

So, how do find these pivot points? Though there are many ways to find the pivot points, the professional traders love to use the simple approach. Instead of using a super complicated trading method, the pro traders use the cluster of candles to find the best trading zones. Open a practice trading account to learn about the pivot points so that you can execute the best trades without having trouble.

Developing a swing trading strategy

The pro traders in the options trading industry use the swing trading method to find the endpoint of the market retracement. This strategy is often used to find the key reversal zone. To execute trades using the swing trading method, you need to learn about the Fibonacci trading strategy. Though the Fibonacci retracement levels provide strong support and resistance, it often breaches. To find the bullish retracement level, you should focus draw the retracement level from low to high. On the contrary, draw the bearish retracement level from the swing high to low. And execute the trades at the 5-% and 61.8% retracement levels only. More information is available on this website.

Use of the wide stop loss

The swing traders always have to use a wide stop loss at trading. Most of the time, it becomes impossible for the naïve traders to uses the swing trading method since they are undercapitalized. Even if you manage to scale down the lot size, chances are high you will not have enough patience to stick to the trade. Try to develop your patience level and start using the wide stops. However, you can reduce the risk exposure to a great extent by using the candlestick pattern trading strategy. Let’s say, you are trying to short the pair on a major swing. You will set the stop loss above the last high. Instead of doing that, you can look for the bearish price action signals and execute short orders with a very tight stop.

The risk to reward ratio

A swing trading strategy may be the most efficient way to make a profit in the Forex market. Sadly the naïve traders fail to make a profit since they always take high risk. Think about the risk to reward ratio when you execute the new orders by using the swing trading method. Forget the fact, you are dealing with a higher time frame. Think trading as your business and try to follow the conservative method. Focus on the long term goals and try to improve your skills by using some basic techniques. For instance, you can trade with the major trend while using the swing trading method. And never execute any trade unless you have a 1:5 risk to reward ratio. A higher risk to reward ratio gives you an added advantage to deal with the losing orders. Eventually, this helps you to earn more money even after having a low win rate.

Filed Under: Personal Finance

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Join Our Newsletter
  Thank you for Signing Up
Please correct the marked field(s) below.

1,true,6,Contact Email,21,false,1,First Name,21,false,1,Last Name,2

 

 

Couples Finance

  • What Dave Ramsey’s Take On marriage Is Missing
  • Tips For Newly Married Couples
  • Getting Together, Getting Hitched
  • Prenup Basics
  • Manage Your Money Together

Great Finance Blogs

  • My Stock Market Basics
  • Cafe Credit
  • Clever Dude
  • Modest Money
  • Mighty Bargain Hunter
  • Frugal Rules
  • Young Adult Money
  • Money Talks News
  • Saving Advice
  • Peer Finance 101
  >> Our *entire* blogroll

Companies Supporting The DINKS

Please consider visiting our gracious supporters:



Great Investing: Get Stock Advisor for Just $99/year

7binaryoptions.com: Your one stop information source for trading binary options.

My Dissertations  Hire an outstanding PhD editor and graduate today!

Myhomeworkdone.com provides homework help any time of the day, 24/7!

123 Term Papers works hard to deliver you a great term paper!

Get the Latest Coupon and Discount Codes at Freecouponcodes.net.

Shop and save on retro modern furniture at EMFURN. Daily deals and free shipping!

The best cheap web traffic that comes in handy for your website traffic needs.

Shop till you drop and discounted offers with Shopee promo codes.

Compare business electricity prices at utilitysavingexpert.com

cheap shopping online at DHgate.com

Footer

Get Started

  • Make Money As An Amateur Photographer
  • The Pros and Cons Of Mutual Funds
  • Building Wealth On $600 A Month
  • Yes, You can Buy An Oil Well
  • Kimball Musk’s Net Worth
  • Nine Ways To Make Extra Money

Explore

  • Home
  • About Us
  • Contact Us
  • Facebook
  • Pinterest
  • RSS
  • Twitter

COPYRIGHT © 2020 Dual Income No Kids DinksFinance.com is a District Media site.