Currency Swing Trading - The Best Method For Novice Traders to Make Triple Digit Gains

Currency swing trading is easy to learn and understand and is perfect for novice traders as it requires less discipline than long term trend following, is exciting and fun and can be very profitable - lets look at the basics of swing trading in more detail.

If you look at any trend up or down, you will see prices that surge to overbought or oversold as greed pushes them to far and fear pushes them to low. This happens all the time and as human nature is constant, it will continue to happen. Look at any price chart and you will see short term surges in price, never last long and prices eventually come back to an average or fair value.

If you want to swing trade watch for surges in price to overbought and oversold and watch for chart resistance or support to hold - You then need to time your trading signal and for this you need to check price momentum is falling into support and resistance.

There are many indicators to choose from and my favorite is probably the stochastic which you can learn about free online; it will only take you an hour or so but that is time well spent and it should be an essential trading indicator for any new trader to learn.

In essence, you want the stochastic to be overbought coming into resistance and oversold when prices are coming into support and you then wait for the lines to cross down in an uptrend and up in downtrend you can then enter your trade.

Your stop goes behind resistance or support you sold into and you then look for a level it could go to and I always look for resistance or support around the 20 day average and then take my profit - just before this level is tested.

When swing trading, you need to get out before the level you are targeting is tested, in case prices recoil back against you and you lose your profit.

Currency swing trading is not about hanging on to long, your aim is a quick profit, get out and wait for the next one. One successful swing trader I knew referred to swing trading as "hit and run trading" and that's a good description!

When you are swing trading don't trade to often, be selective and only trade really overbought or oversold scenarios, these are the high odds trades, which yield the big profits.

The above is a simple Forex swing trading system and it works, will continue to work and with a little practice and education, you will be confident to trade in around a week or so and be making some great Forex profits in less than 30 minutes a day.