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Swing Trading Education

Most traders can be classified as either a day trader or a swing trader depending on what market we are referring to.  In Futures, many people day trade various markets after they have been educated on doing so.  Forex is a great market to gain a swing trading education for due to many factors including spread costs and long term moves.  I can say from experience that most of my wins while trading Forex, as well as the larger pip count, is a result of my swing trading efforts.  Some say that day trading is more of an income producing activity while swing trading is for capital appreciation.

Before we even get started talking about swing trading education, do you know what swing trading is?  Don’t confuse it with position trades where traders are looking for runs of weeks and months.  It is not the same as the old buy and hold the dominated the stock scene for decades.  It is certainly not day trading where you are reacting to every tick in the market.  Swing trading is a much more relaxed style of trading when compared to day trading.

Swing trading can be described as getting in on the beginning of a trend and riding it until it ends usually on the daily chart.  Take a look at this chart where the trade would have ran for 53 days:

Swing Trading Education

We have an overall down trend.  We want to trade the first pullback and the break of the low for a shorting opportunity.  Ignore the minor swings in the market because we want to take advantage of the major swing in this time frame.  Once the down move appears to be over, you exit your positions which may be for a profit or a loss depending on the move.

There are a few places that offer in person training but for the most part, taking swing trading courses online is the preferred method of training.  It is an extremely cost effective way to learn swing trading styles and because of the nature of the internet, you can learn how to swing trade from experts around the world.  Be aware though that there are unscrupulous vendors out there with the prime motivation being of taking your money.  It is highly advisable that you do your due diligence on any company you are looking to gain a swing trading education from.

One of the main things you should look for when looking for swing trading courses online is someplace where the teachers have experience in the market.  While you may not ever duplicate their results, when you learn how to swing trade from experts you know you are getting worthwhile information that can put you on the right side of the trade.

A few others things to help narrow down your choices:

  • What is the total cost of the course including all “hidden fees”
  • Can you see value in what you will learn?
  • Is there a performance guarantee?  Be careful with these however because your results may be massively different than other traders using the same information.
  • Are special proprietary indicators required and do you have a lifetime license for them?
  • Do they spend a lot of time on the often glossed over world of money management and trade psychology?
  • What type of follow-up is included and for how long?

Those are just a few of the questions you may want to know the answers to before you sign up for any swing trading courses online.  It is an important decision and one that can change your entire life so it is imperative that you take the time and investigate thoroughly who you get your trading education from.

Gaining a swing trading education has many benefits especially for those looking to spend less time working and more time living.  Actually, one main reason people get into trading is to leave their day job and work from home.  A 30 second commute with a coffee in your hand to your home office is something most everybody would love.  That said most people start their trading venture by swing trading.  Why?  Since most people hold a day job, swing trading is, by its very nature, perfect for those who will not or can’t day trade.

  1. You are not tied to your trading screen searching for setups.  Most swing traders go through their charts while the market is closed (or in the quiet evening session in Forex….New York time) and set their orders for the morning.  It is a very relaxing way to trade!
  2. Once in a trade, you don’t need to monitor it moment by moment.  You set your target(s) and your protective stop and go about doing other things.  You can check your charts after every session if you choose to see if you should adjust your stops.  Most times, you will not be doing anything for days.
  3. Returns can be quite large.  Many swing trades can travel for days and while some may not be winners, proper trade management has kept your exposure low so a loss can still be a win if you scale out positions.  On the flip side, winning trades can be a windfall.
  4. Swing trading can not only provide an income but also compound your account depending on how you close out your positions.  Some traders will scale out to take some income type profits and then let the remainder run for bigger gains.

Swing Trading Exit Strategies

When you learn to swing trade by experts in trading, you will be learning a skill that has the most bang for the buck.  Your trades end when the trend ends so for the most part you are not sitting on positions for months.  The amount of effort needed to scan for trades and set them up is minimal which gives you a huge reward to effort ratio.  There are not many things you can do with minimal effort that has potentially a high payout rate.

When you take swing trading courses online, you may learn quite a few strategies that work well in the market.  Some swing trading strategies may be discretionary and others may be mechanical. Not every swing trading strategy will “fit” you but there are plenty of ways to trade.  One strategy you may learn with your swing trading education is a simple pullback strategy.

First, I want to set up the circumstances of this chart:

  1. The higher time frame chart, the weekly, has shown a down trend so on this chart, we are only looking to sell.
  2. Wait for the cross of the moving averages to show a change in direction on this chart which is a daily chart.
  3. Look for prices to pull back into the averages.  Place a sell stop below the low of the appropriate candle and your stop above the high.  If higher low forms, move sell stop under that candle if it also made a higher high
  4. Either scale out or exit when the averages cross back over or a chart pattern suggests a reversal is in play.

This trade ran for 53 days and banked 874 pips with a risk of only 85 pips!  This is a swing trading method that you may learn from your studies.

As you can see, the potential for swing trading is huge and that is why you should take your swing trading education seriously.  Not everybody will succeed but you can give yourself a fighting chance if you not only learn how to swing trade from experts but also treat is like a profession.