Swing Trading: An Antidote for Frustrated Traders
When a swing level is tested, traders can look for buy or sell signals generated by their trading system. In our case we look for price action reversal patterns to enter us into a trade.
The idea is to buy on weakness and sell on strength to get you into the trend at the best possible prices.
Read that again…
Buy on weakness
Sell on strength
The example above demonstrates the advantages of buying on weakness in an uptrend.
Smart trading is exploiting those short term oscillations (counter trend movements) to enter into the trend momentum at these swing levels.
Swing trading allows you to catch the ’meat’ of the move by generally holding a position that can last anywhere from a few days to a few weeks – sometimes months.
Much better than day traders and scalpers who spend hours in front of the screen to pick up breadcrumbs.
Slow and steady wins the race here. The advantage here is you don’t need any sophisticated computer setups or ultra-high speed connections.
Spreads don’t become an issue either, when you’re pulling in 150-200 pip or more on each trade, you’re not going to kick and scream about a spread charge from your broker greater than 3 pips.