Advantages and disadvantages of swing trading

Swing (or some written "Suenq") is one of the trades of the month in the financial markets, but, as is the case with other strategies, forex, there are positives and negatives associated with the presence Basuenj, and knowledge of such matters early can be important to determine if you want to do business in the long term

Advantage of the swing

• You can swing to take advantage of the situation of the natural tides of the market. Financial markets did not move in one direction at all. And with the ability to take advantage of it,

 you can increase profits and it is theoretically achieve higher profits when the market during the next few days, and then make a profit when they fall, because it are sure to fall sooner or later

• by entry and exit to and from the forex market, you can identify additional opportunities for trade in forex. If you look at any financial table, you can see that there is a long-term pattern almost dome, but may not always be a market in the area of ​​support or resistance. With the entry and exit from the market over several days, it is natural to collect revenue, and you can select new markets to trade for others. It helps in the distribution of risks, and assign a smaller percentage of the capital rather than the constant need to call in the forex margin. When you close your position before, you do not need to deposit more money in your account to cover new situations

• The stop loss points in the swing, which is characterized by trade simply smaller than temporary trades with long duration of time. Can be a stop loss points to swing when the 100-point scale based on 4 hours, while there may be point stop loss on a weekly schedule of building general pattern at 400 points. It allows you to build the position and size rather than the more deliberative capacities through trade very long-term

• have clear boundaries. The swing trader technical trader is larger, and therefore should be in a specific area is generally considered a sign that trade works the opposite of what he wants. For this reason, you can know when a trade is not working for you, and you can limit the damage can be caused by poor circulation process. Traders may have throughout the term is usually to develop a wider range of markets when they are waiting for them to follow through "fundamentals "

Negative swing

• You can get many goods. Only shows that the market support or opposition to a certain place, does not mean that he will respect them for the day. You also can place any time of the trade, you risk money, and therefore to risk money in times more swing trader. Probability says that you may lose money from time to time regardless of how your skills

• must be familiar with is an excellent technical analysis. While this point is not necessarily "negative", meaning they are more work. Can any one know about pattern runs from lower left to upper right on the table with the passing of time, but trying to deal Basuenj table must identify the point of entry and exit, and this is something that may be the analyst Technical done, but need to learn first, and it takes time   

  swing requires a different mindset and nerves are stronger than other long trades. While the trade quickly is not imaginary requirements, the risk rolling speed on the subject, "because out of the market because of fear", as the withdrawals narrow ranges seem more violent than those who look at the table of weekly, and it is something myself to all traders to deal with him during the time of their trades.