Wow, some very interesting comments here.
I am a Swing Trader. I have a Methodology shown in various threads on this site (Trade Journal, Swing Trading) which is based on Candlestick Patterns, Signals, Consolidation etc. on the Daily and 4 Hour Charts. Holding Period varies but it can be between 4 to 7 Days on average. Unfortunately, as was mentioned earlier, it is difficult to share the method without being banned for solicitation. As such, I only share the results of my trades.
I used to day trade the smaller time frames, but with mediocre to poor results. It was only when I lifted my head up and looked at the larger trends did I see a realistic way of making money. 90% of the time that I traded these trends I made money (even placed in the top 10 twice of a popular Demo Trading Contest). However, due to impatience, I went back to Day Trading thinking that there was still some way to make money this way-but continued to lose again.
Finally, I spent the last year demo trading the Swing Trading Method, ironed out the kinks, set up strong parameters and rules and now use it on my Live Account once more.
Fundamentals are not necessary for my way of Swing Trading. As FxMug stated, most of it is short-term and volatile and are often uncorrelated to the major trends on the Daily and 4 Hour Charts. Some people may study fundamentals and benefit from its use, but my way of Swing Trading doesn’t require it.
By the way, I am an Economist by Profession (M.Sc.) and have worked at my country´s Central Bank.
As you will see from my thread, (I will update shortly) after only 7 trades, I am up by close to 400 Pips, providing a return of 13.0% (some trades were missed as I spent time revising the Methodology). Based on the strategy and the number of opportunities to be provided in the next few months, I would only need 9 trades to realize a 100% return - assuming no losses of course.
Now 13.0% might sound small compared to expectations or what others are actually making with their Swing or Day Trading strategy. But my thinking is that if you can generate close 50% - 100% on an Investment over a few months by trading only 2 or 3 times per month, without the stress of constantly monitoring a market, assessing unnecessary conflicting economic data or indicators, while you keep your Day Job, I would take that any day given what I have been through with day trading. Can you imagine what that would represent for someone in 2-5 years?
Swing Trading. Thats where the money is.
Duane Shepherd