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How to Swing Trade Successfully.

If trading seems frustrating and difficult to you, don’t worry, you are not alone. Many traders, if not most, begin their trading careers with lofty goals and a full tank of hope, but those things can fade very quickly if you aren’t approaching the market from the right ‘angle’.

In our Team, we take the view that whether or not a retail trader (like you or I) achieves consistent success in the market depends heavily on which method the trader uses. That is to say, we believe if you are trading with the wrong methodology, there is no way you will ever make money, even if you’re doing everything else right.

Trading success is the end result of getting the “3 M’s” right; Method, Mindset and Money Management. You cannot succeed with only two of the three; you must have all three down pal.

Swing trading is perfect for those who have a full-time job, and for those who don’t want to watch every tick of their investments. It’s a great balance between “buy and hold” investing and day trading. Successful swing trading often yields better returns over a year than “buy and hold”, and your money will be liquid. Swing trading (for most) is much less stressful than day trading, and involves much less micromanaging. There is also no minimum capital requirement for swing trading, as the pattern day trader rule is of no concern because you’re not buying and selling your positions in the same day. Here are 5 steps to achieve success in swing trading.

  • Educate Yourself

It is crucial that you educate yourself thoroughly before putting your hard earned money on the line. Being a trader is no different than any other profession. Doctors and lawyers spend years getting trained and educated before they make a single dollar. Most successful traders spent months studying the market before they put any money on the line. You need to have an understanding of technical and fundamental analysis of stocks in order to trade them. Once you have a understanding of the basics of Forex trading, you can figure out what style of trading is best for you.

  • Create A Trading Plan.

You have to figure out what style of investing suits you and your lifestyle the best. As mentioned above, swing trading is very popular because of its potential to capture big % returns over a reasonable time frame with a relatively small time commitment (compared to day trading). Decide whether you will focus on a certain patterns, or if you will be continuously updating your watch list with new potential plays. If you don’t have a trading plan you are certainly Gambling and that is too bad for your Health and Account Sustainability.

  • Find The Right Trading Community.

Now that you have defined your plan, you want to find a community of traders with similar goals and style to yourself. There is no reason to try to learn trading as a profession by yourself. Joining a community will exponentially reduce your learning curve, as you can learn from veteran traders and their mistakes instead of making them all yourself. Unfortunately in the Forex education space there are numerous services that will try to scam you by posting fake trading results. Be sure to thoroughly research any trading educational service you’re thinking about giving your money to. Choose one trading community then stick to it. Don’t allow multiple platform as you will loose focus

  • Practice in A Simulator and Journal Your Trades

Now that you have the knowledge foundation, it is time to start actually trading. There is no reason to be trading with capital until you have proven to be profitable on a simulator. In order to find your edge, you should journal all of your trades. You want to keep track of all the setups you’re taking in the simulator. You should focus on the setups that you have the most success and that give the best risk versus reward. Once you’re profitable on the simulator for a few weeks you will want to switch to live capital. You should Demo trade for at least a year then jump to live trading but unfortunately most traders Start trading live within the first 2 months of trading.

  • Start Trading Live with Small Size

Now that you have defined your trading edge and achieved success on a simulator, it is time to start trading with real money. Trading with real money is completely different from the simulator because there is so many emotions thrown into the equation. Many people who find success in the simulator do not see the same results with real capital. There is no reason to be trading with large positions sizes until you have achieved a few months of consistency with live capital. Starting out, you should be very selective with the setups, and only focus on your niche plays that you have the most success in. Once you find some success, you want to slowly build on your repertoire of setups and gradually increase your positions sizes over time. In trading you’re your own boss, so you get to decide when you are worthy for a raise. But prove that you can manage small capital by providing consistent results before jumping with larger capitals because you will likely fall and end up in unnecessary debts.

  • Learn to Hold Trades

Its the most important thing out of all i have mentioned. Holding trades can not only prevent you from taking other positions but also letting you at ease and let larger profits to unfold. Many times i have got into temptations of closing and i try hard to resist and later on the trades just goes in my favor. The market is very tricky it can literally drive you crazy and at the end of the day end doing stupid decisions. Learn to swing because it not only save your money but also your soul.

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