Finding the right Forex strategy is tough.
Where do you start? How do you know when you’ve found the right one?
Considering the thousands of trading strategies in the world, the answers to these questions are difficult to pin down.
It only gets worse when you add the endless number of technical indicators.
But it doesn’t have to be that way.
Why not start with identifying a suitable trading style, such as Forex swing trading?
Compared to the seemingly endless numbers of strategies, there are far fewer trading styles. While the exact figure is debatable, I would argue that there are less than ten popular styles in existence.
Once you’ve identified a trading style that fits your personality, it becomes much easier to find a suitable strategy within that style.
Exclusive Bonus: Download the Forex Swing Trading PDF Cheat Sheet that will show you the exact 6-step process I use when trading the Forex market.
If you have identified swing trading as a candidate—or just want to know more about it—then this post is for you.
By the time you finish, you will know exactly what swing trading is and whether it’s right for you. I will also share a simple 6-step process that will have you profiting from market swings in no time.
Read on to learn how to make swing trading work for you.
Before we move on, it’s important to know the difference between styles and strategies.
As I mentioned above, there are far fewer trading styles than there are strategies.
Here are a few of the most popular styles:
Within each of these, there are hundreds if not thousands of strategies. In other words, there are many different ways to day trade just as there are many ways to swing trade.
It’s up to each trader to make the style his or her own.
For instance, one day trader may use the 3 and 8 exponential moving averages combined with slow stochastics. Another trader of the same style may use a 5 and 10 simple moving average with a relative strength index.
Both are considered day traders, but their strategies are different.
The same goes for swing trading. The endless number of indicators and methods means that no two traders are exactly alike.
That’s especially true once you add human psychology as a variable.
In summary, trading styles define broad groups of market participants, while strategies are specific to each trader.