Golf swing trading is one of the best ways to earn money in forex trading, it’s also a lot easier mentally than trend following.
It’s thus a great way to trade for novice investors. Over the last few weeks we have looked at several live examples:
Banked 4 revenue, scratched one trade at break even and have one open. Let’s look at it and another potential opportunity.
Very first why is swing trading an easy way to trade?
When we say is easy, all of us mean psychologically.
You get in fast with low pre defined risk and you’re normally out in 2 – 5 days with a profit.
This is much easier than long term trend following, in that you do not have to wait for months and see dips eat into your open profit.
Long term trend following is highly profitable but requires a lot more discipline.
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We personally mix the 2 ways of trading to gain some diversification of style and smooth the equity curve.
Swing trading basics
We normally look for important chart assistance and resistance and trade as opposed to it.
We wait for prices to check these areas and watch for stochastic momentum to fall against level of resistance or rise against support.
After that we know the level has held and trade off it.
We also use RSI and Bollinger bands to define targets and that’s this.
Nice ands simple, but can be very profitable you can read more about this method in our other articles.
We have been short at recent nearby heights and would look for a pop towards the downside to Fridays low or close to the middle of the Bollinger band.
Stochastic is usually weak at present and odds favor a bit more to the downside.
With golf swing trading you don’t want to hang around to long, get out on specific target and that’s very close now.
One more opportunity
Lets look at another possible opportunity that’s could be shaping up.
The euro is trading close to its highs and the spike at the top of the chart is resistance. Stochastic momentum is waning and a combination with bearish divergence will place the odds in favor of the bears.
The key point is to wait for confirmation of the crossover – the target is after that Fridays low just above the center of the center of the Bollinger band.
The tools used swing trade are simple and easy to use, but that doesn’t imply they can’t make profits as we have demonstrated.
Importantly, for novice traders the particular discipline needed to trade this way is a lot easier.