Tap to Read ➤

What is a Swing Trade Strategy?

Stocks and bonds offer a great jumping off point for long-term returns.
Modern Times May 4, 2019
The forex market provides an exciting and highly-profitable way to maximize intermediate returns that you can realize in weeks or months rather than decades.
The forex market is simply a currency exchange platform. If you have ever traveled abroad, you probably had to deal with the headache of service fees, poor exchange rates, and unfriendly kiosk employees. This aspect of forex is a nightmare, but with a little strategy, it can be leveraged in your favor.

The Benefits of Forex

Forex trading has the unique advantage of constant price action. Unlike the traditional stock market’s weekday schedule, the forex market is only inactive for a short weekend spell.

Otherwise, trading occurs around the clock, with peaks at converging international activity times. While New Yorkers sleep, Tokyo enjoys its afternoon, and so can your money.

Do Your Homework!

The forex trade is lucrative, but only for those who put in the work to make themselves successful.

Forex utilizes leverage trading: this means you put up money to trade, but the platform you choose multiplies it by a factor of 10 or 100. This can net enormous profits, but without a practiced eye, you may see staggering losses instead.

Utilizing a Winning Strategy

Finding a strategy that works for you is critical to success in this world; not unlike other investment vehicles.

Butterfly patterns, metric measurements, and swing trading strategies are all functional ways to improve your investment game. Swing trading, in particular, is a fantastic way to minimize potential losses.

Evaluating the Swing

The swing pattern follows the fluctuations that any commodity naturally takes. You only need a metric called the Bollinger Bands – these indicators measure over buying or selling.

This stat allows you to visualize the data with no confusion. Simply wait for a fluctuating wave that punctures the limits of either bound: indicating a reversal in price.

Applying the Swing Across Trading Mediums

The best part of swing trading is that it can be applied to any tradeable commodity.

Once you have perfected your reading of the Bollinger Bands data in the forex market, you can transpose its practice to your traditional stocks portfolio to maximize buying opportunities at low price points.
The swing strategy is a simple yet powerful tool to help you break into the forex market and begin building up short term profits as well as your long term assets that will carry you into retirement.

While these are essential to later financial stability, we all want to experience the good life now as well. With forex, this is no longer just a dream.