Definition:
Swing Trading is a term often employed to refer to a special method of trading in which the aim is to muster gains of a stock within a set time period of one to four days. Traders who employ this method of trading are more interested in the prevailing value patterns and drifts. The main objective is to collect the profits as soon as the market touches a certain high point.
A swing trader needs to be adept at the skill of technical analysis to formulate his strategy within a very short period of time.
The name swing trading is often used to refer to this type of trading because the currency pairs often reach their greatest potential only for a very short period of time and the trader needs to act immediately in order to be able to garner the gains.
Essentials for swing trading:
Swing trading is not as easy as the name implies. Following are a few things that a trader should know about before deciding to take a shot at being a swing trader:
1) Knowing about the points of resistance and support;
2) Test your conclusions;
3) Application;
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