Swing trading is a long term trading style with typical holding periods exceeding a day, possibly running into weeks or even more. This trading style is great for those who are interested in pursuing part-time forex trading. Like other trading styles, it also requires traders with a certain frame of mind.
Swing trading is best suited if you
1. Are fine with holding a trade for more than a day, possibly several days.
2. Can do detailed analysis to ensure the trade is confirmed by multiple indicators.
3. Have an appetite for bigger stop losses to weather-out short-term fluctuations.
4. Are patient, and do not stress on market sentiments if your trade continues to hold strong.
5. Do not mind doing just a few trades in a week, even just one.
6. Can spend a couple of hours a day analyzing markets as well as read into any drastic fundamental shifts.
There are many factors that affect exchange rates of currencies. However some are more important in currency trading than others. These are; Interest and Inflation rates, Trade balance, Currency market speculation, Foreign investment and Central bank market intervention. Learn how to use these factors in your forex tra ...