How to start Swingtrading?

[AdelMAbdelnabi]

Hi SimonZed, from the sound of it you are lacking confidence in your trading system. If at any point you can’t ‘push the button’ you should re-evaluate your indicators. Like Hugh said, your risk is probably too large as well.

I also see that you are in Quebec, putting you in the eastern time zone so I’m not sure how a regular evening job would hurt your day trading. Perhaps I am confused or maybe you meant day job. I work during the day so swing trading really appeals to me. I rarely check the charts during the day time and most of my entries are made just after the close of the NY session.

I won’t comment on the indicators you use because we all have our own style and particular setup we like, but before you start swing trading I recommend you try out your indicators with a demo and do some back-testing to make sure it works for you.

Swing trading in my opinion is more psychological than daytrading (I know, I know, the day traders will argue that) since we setup and make our trades then let them go. I only check my trades every other day or so. If you are used to daytrading there are some things you need to be aware of when swing trading like average daily pip movements for the pair you are trading i.e. the EUR/USD has an average movement of 102.91 pips per day over the last 20 days. Swing trading with a stoploss of 50 pips is more than likely going to get you stopped out real quick. You also need to watch the down days, those can be trade killers and are very depressing if you let it get to you. Make your trades based on the solid, proven, indicators of your choice and stick with it. A down day on your pair is not the end of your trade (unless of course you didn’t watch the daily average pip movement and went with a 50 pip S/L )

I can’t speak for others but as for me I use a particular set of a few indicators; a couple SMA’s, Stochastic oscillator, RSI, Fib once in awhile, and I draw pivot points & S/R lines. As far as pushing the button, I don’t do anything until all of my indicators match up. I start with a weekly chart to get the overall trend and S/R levels, the daily chart indicators are where I decide to get into a trade or not, and the 4hr [I]USUALLY[/I] gives me my best possible entry point.

I hope this was helpful! Good luck!

For those of you who read this I keep a list of average daily pip movements for multiple pairs (updated weekly). You can message me and I’ll link you to my site for the averages if you like.

-d0c

Hi

Im kind of new to forex trading, i find swing trading more compatible with my personality and time schedule. im interested in looking at your website, especially your list of average daily pip movements. when i enter a trade and place a stop/loss order and leave for a few hours i keep exiting my position early before i could gather enough profit. i use 10-25 pips. i was hoping my knowing the average daily pip movement i could place a more reasonable S/L or T/P.

thanks,

Adel M.

[fxfocus]

Hi
.[I] i use 10-25 pips. i was hoping my knowing the average daily pip movement i could place a more reasonable S/L or T/P.

thanks,

Adel M[/I].

That’s quite a tight stop Adel. Most swing traders will probably tell you that if you’re going to be in a trade more than a day, you’ll need a larger stop to deal with the volatile range and spikes some currencies have. GBP/USD and other GBP crosses in particular. A daily range will give you a clue how much movement is left in a currencies tank, so that’s good info to have if you’re stops are tight,

Me I’d just prefer to scale the positions depending on the size of the account, and keep the risk contained to the 2-3% risk rule. So if you have a small account, be mindful of the size of the position, not just the number of pips you’re risking.

Think 50 pip stop loss with 1/2 mini lot instead of 25 pips with 1 mini lot @ $1/pip

So you increase the size of your stop, so you don’t get stopped out and your trade has room to wiggle and maybe become profitable. If you trade with a micro account you have a better option of resizing your position. It gives you great flexibility. So instead of betting with $1 and $10 bills per pip, you can use nickles, dimes and pennies Staying in the game,not blowing accounts, learning as much as you can and gaining experience that’s the name of the game when you start. Sorry if I made this sound too basic. I know there are some intermediate and advanced traders on here, but this reply was for those maybe just starting out. I’ve been trading Fx over 10 years, and still practice this, it’s because I have too much respect for this market and seen traders make wild punts and get burned

[sylas-k.s.a]

Hello…can i get the link too?