Swing Trading - How To Identify A Reliable Swing Trading Strategy
How can you identify a good swing trading strategy
? One of the hardest aspects of trading is finding a trading method or strategy that is reliable and has a proven positive hit rate. Do swing trading strategies the perform well and consistantly have any aspects that make them better than others? Are there any key points that a strategy must address to truly be considered good and assist in trading? Before you embark on your trading career, it is vital that these questions and more be properly addressed. Choosing a swing trading strategy is a core component of trading successfully and profitably in the long run.
A key point to any swing trading strategy is allowing a trader to identify and trade with the trend. Therefore it makes sense that any trading strategy you wish to implement should for the most part allow you to place trades in the direction of the major trend. Trading with the trend is what the majority of swing traders do. What makes a trend so important for swing trading or trading in general and why should you only use a strategy that for the most part trades with the trend? It is widely believed and said that the smart money is the trend and by following it you stand to win more than you lose. It makes sense then that the best trading strategies are ones that allow you to trade with the trend and not against it. Trading with the trend and not against it is the simplest way to gain a true trading edge while increasing your hit ratio. Many traders spend their entire trading careers in search of some kind of edge without realizing that using a strategy that trades with the trend is possibly one of the easiest and quickest ways to gain a trading edge in any market.
In addition to trading with the trend, good or effective swing trading strategies should be able to take advantage of market rallies and pullbacks. Swing traders do not just enter haphazardly in the market. Instead, swing traders are looking for an opportunity to get into the market at a price and time that puts the odds in their favour. Just where or when are these so called opportunistic times to enter? At rallies and pullbacks. By first waiting for rallies or pullbacks, this allows a swing trader the opportunity to get into the market at a price which is usually discounted and cheaper than what the majority of other average Joe traders paid. Why is this even important? If you can enter the market at a price that is in your favour, you stand the best chance of entering into a winning trade and making a profit.
A good swing trading strategy is one that is based around trend trading and entering the market at a time where you stand to get a good price. Swing traders manage to do this by waiting for price to retrace before it continues on with the main trend.
by: Creztor Tessel
A Good Strategy Is The Key To Winning Poker Texas Holdem Secret Forex Trading Strategies - Forex 7 Minutes Secret Revealed Is Trading Currencies The Thing For You? e20-340 rapidshare Callaway X-20 Iron Set Is Rightnow on Wholesale Tax Relief Tools- Significant Roadmap For Tax Relief Tools Moving Truck Rental- 10 Effective Moving Strategies Choosing A Provider For Metatrader Programming Legal Translation Workers Expect Increase In Corporate Takeovers Wholesale Blankets And The Need For Warmth WoW World of Warcraft Strategy Guide HIC, Hawaiian Island Creations, Offers the Specialty Retailer a Line of Surf Inspired Clothing Using Forex Charts to Trade Winning Strategies