Jan 20 2010
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Swing Trading Software FREE. Swing trading vs. day trading, does it have to be one or the other? The trend-setters behind the 'Are You A Forex Genius?' Quiz say no. Did you take the Forex Quiz? No, just download the FREE Ultimate Swing Trading Software that you won't be able to find anywhere else and take the Forex Quiz to test your knowledge. Forex trading is going to make many millionaires in this decaded. Do you want to be one of them? You can be one of them. You just need the right methods and strategies to reach there.
Swing trading gives you flexibility and doesn't require hours of your attention. But if you're a trading junky and you don't want to give up the thrill you get from day trading - you don't have to. Swing trading can be the perfect complement to your day trading strategy. One of the most valuable benefits of adding a swing trading strategy into your trade plan is it gives you the freedom to spend your time the way you want to. If you don't have time to day trade, or the day trading markets aren't moving as favorably - you can choose not to day trade and still have a profitable swing trade for the day.
Diversification is key, right? Are you craving more info on how you can add swing trading to your trade plan? Join me at the Ultimate Swing Trader webinar. I'll be listening-in on Wednesday, January 20th at 12pm EST U.S. (New York Time) / 9am PST / 5:00 GMT.
Mark Larsen Million dollar forex challenge
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Here is my mission – to turn a $5000 trading account into 1 Million Dollars by trading only automated forex robots. I have cherry picked the best performing robots from over 300 commercial systems and placed them on my Iamfx.com broker trading account. I will be publishing my results in real time so you can see and follow my progress! Each month I will be posting an update with my progress and I’ll write about any modifications that I apply to my army of robots!
Don't forget to check out this page from time to time and follow my newsletters to see if I fail or succeed in accomplishing the goal! Ready? Let the challenge begin!
Aug 6 2009
A professional currency trader may be confident that the US Dollar is indicating overall weakness and the Euro is indicating overall strength for the coming six months after performing the fundamental analysis on both economies. Get Netpicks
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Keeping in view the overall strength of Euro and the weakness of US Dollar, the next step for the position trader would be to open a long position in EUR/USD pair. This simultaneously provides the position trader with long Euro position and a short US Dollar position.
The long term directional bias has been formed by the position trader on the basis of fundamental analysis. Going long on Euro and at the same time short on US Dollar, this combined trading position fulfills the fundamental outlook of the position trader on both the currencies.
However, pinpointing the best time for the trade entry as well as setting risk managed control strategies is best accomplished by using technical analysis. Position trading depends on using fundamental analysis in identifying a profitable position in the currency market and then using technical analysis in setting up the actual trade.
So the position trading uses fundamental analysis in pairing strength with weakness. Now this concept fits extremely well with the forex markets as all currencies are traded in pairs unlike the stock market or for that matter other financial markets.
Position trading with the strength/weakness model is the most logical fundamental method for approaching long term forex trading. Trading forex requires a directional commitment on two currencies for each trade, so position trading is ideal for forex trading.
Buying one currency because it looks like it will become stronger while simultaneously selling another currency because it looks like it will become weaker is a better way to trade as compared to other financial markets.
Your first step as a position trader should be analyze the Central Bank policy statements, economic growth factors of these countries, global economic news etc to identify the currency with the strongest positive future prospects and the currency with the strongest negative future prospects at a given point in time. As a position trader, you will have to do fundamental research and analysis on all major currency pairs.
Suppose you identify USD and CHF as the strongest loser currencies by performing fundamental analysis while EUR and AUD as the strongest gainer currencies in the foreseeable future. Possible currency pairs for position trading could be long EUR/USD, long AUD/CHF, short USD/AUD and short CHF/EUR.
After this, you can enter the trades with the help of technical analysis and hold them as long as they move in the correct direction disregarding minor corrective swings and market noise because the price action is never ever linear. It is always up and down with minor trends superimposed on major trends.
Position trading maybe the most difficult method of approaching forex trading for the beginners! It requires a great deal of patience and faith in one’s own analysis to weather the inevitable swings against the trading position. But if done properly it can be one of the most effective methods of extracting long term profits from the forex markets.
Aug 6 2009
There are four style of trading: Scalping, Day Trading, Swing Trading and Position Trading. Position trading is all about taking a directional market position and holding it as long as the trade makes sense from the trend standpoint. This means that positions are held for longer term.Know
forex scalping. Learn
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forex market.
In the fast moving world of forex trading, position trading may mean keeping a trade open from one week to a month to as long as a year or possibly more. Most individual and retail traders do not have the patience for position trading.
This is somewhat unfortunate as position trading can be one of the most profitable styles of trading due to the fact that many currencies tend to trend well on long term basis. Only those position traders who have the patience to stick with the trend and let their profits run are generally able to capitalize on these longer term price moves.
Position trading due to its long term time frame tends to rely heavily on fundamental analysis along with longer term technical analysis. This is unlike day trading or swing trading that relies almost exclusively on technical analysis due to the short time frames.
Fundamental analysis is geared towards longer term price forecasts rather than swing to swing movements that are primarily the focus of technical analysis. Fundamental analysis concerns itself with the economic forces that drive the major market movements.
The general direction of change in the currency value over the long run is what interests the position traders. The economic forces that determine the long term trend of a currency include interest rates, inflation, GDP, unemployment and help to determine the value of the national currency overtime.
Trading with the trend is what the trend traders do. Position trading and trend trading both follow almost similar approaches. However, position traders often rely on fundamentals along with the technicals; trend traders are almost exclusively technical in nature.
Carry trading can be considered a form of position trading as carry traders hold interest positive positions to benefit from both regular interest payments and exchange rate profits. How do position traders decide which position to take?
Forex position traders weigh strength and weaknesses in currencies by taking various fundamental and technical factors into account. They then establish positions on currency pairs according to their views.
Let’s suppose that a position trader performs fundamental analysis on economic conditions surrounding the major currencies and is of the view that the US Dollar is indicating fundamental weakness going forward.
At the same time, the position trader thinks that the Euro is showing significant fundamental strength going forward. This opinion may have been formed on the state of inflationary pressure in the economy, the recent rate of economic growth, comments by the Federal Reserve Board (FED) Chairman or the President of European Central Bank (ECB), the state of ongoing recession and so on.
Jul 6 2009
Let's compare
day trading with
swing trading.Day traders often rake up major commissions charges if they are trading stocks which makes it that much more difficult to beat the overall market. In case of currency trading, the cost of trading is hidden in the bid/ask spreads offered by the broker. So the more you day trade, the higher your trading cost will become. In the end, if you are unable to breakeven, you cannot survive long in day trading.You must get
forex training.
Swing trading also entails facing stiff trading costs in the shape of commissions if you are trading stocks or spread in case of currencies but these trading costs are nothing as severe as in day trading. Because price action spans several days to several weeks, market fundamentals can come into play to a larger degree as compared to day trading.
Swing trading can also generate higher potential profits on single trades because the holding period is longer than in day trading. Day to day currency movements are due less to market fundamentals and more to short term supply and demand of currencies or shares.
Day trading demands lots of attention and time commitment from you. There is a misconception that day trading can be taken as a hobby. It is stressful and a winning position can turn into a losing one within seconds. If you want to permanently take on day trading, you have to have strong nerves.
Swing trading currency markets can be very profitable. Currency markets are open 24/5. You can enter or exit a position even late hours. Now the good thing about swing trading is that you can take it full time or part time. Swing trading with an eye on earning additional income or improving the returns on your portfolio is less stressful than swing trading for a living.
Part time swing trading means doing analysis when you get home from work! Then implementing trades the following day! You can enter stop loss orders to protect your capital even though you may not be able to watch the market all day. You should first go through this phase first if you eventually want full time swing trading.
Swing trading part time is suitable for those individuals who have a full time job but can devote a few hours a week to analyzing markets and securities or currencies. They have a passion for financial markets and short term trading. They are achieving subpar results in their current investment portfolios from their financial advisors or third party.
Part time swing trading is for those individuals who are not gamblers and don’t take undue risks like doubling down their positions. They should also have the discipline to consistently place stop loss orders. Again swing trading is not for fun.
By swing trading instead of day trading, you are able to commit less capital to the markets to reach extraordinary gains. At the end of the day, when it comes down to is the fact that you need to determine your trading style before you become serious in trading.
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