The Full Trading Strategy Manual

The Full Trading Strategy Manual

November 23, 2022 0 By Scarlett Watson

Given the thousands of trading strategies around the world, the answers to these questions are hard to pin down. Best Trading Course in Australia It only gets worse when you add an endless number of technical indicators. But it doesn’t have to be that way. Why not start by identifying an appropriate trading style, such as Forex swing trading? Compared to the seemingly endless number of strategies, there are far fewer trading styles. 

Although the exact figure is debatable, I would say there are less than ten popular styles.
Once you have identified a trading style that matches your personality, it becomes much easier to find an appropriate strategy within that style.

Trading Styles Vs Strategies

Before moving on, it is important to know the difference between styles and strategies. As I mentioned above, there are far fewer trading styles than there are strategies. Here are some of the most popular styles of swing trading Trades of the day Scalping (often a subset of day trading Exchange of positions

High-Frequency Trading

Within each of them, there are hundreds, if not thousands of strategies. In other words, there are many different ways to do day-to-day trade, just as there are many different ways to swing trade.

It Is Up to Each Trader to Make the Style His Own.

For example, a day trader might use the 3 and 8 exponential moving averages combined with a slow stochastic. Another trader of the same style can use a simple moving average of 5 and 10 with a relative strength index. Both are considered day traders, but their strategies are different.

What Is Forex Swing Trading?

As traders, it is our job to time our entries so that we catch the majority of each swing body. While catching a swing point can be incredibly lucrative, it’s not absolutely necessary. In fact, attempting to catch the extreme highs and lows of the swings can lead to increased losses. 

The best way to approach these trades is to remain patient and wait for a signal to buy or sell a price action. I will get into these various strategies shortly. For now, just know that the swing body is the most lucrative part of any market move.

Day Trading Vs Swing Trading

The opposite of swing trading is day trading. These two couldn’t be further apart. As you know by now, the goal of swing trading is to catch the biggest swings in the market. Naturally, this requires a holding period that ranges from a few days to a few weeks. Day trading, on the other hand, uses very short holding periods; sometimes a few seconds. There are other trading styles, but these are two of the most popular. I’ll go into some of the pros and cons of both, but first, let’s look at a simple 6-step process for swing trading.

Switch To the Daily Time Interval

I spend most of my time on the daily charts. They provide an overview of what is happening with the price action and provide more reliable signals. However, not all daily deadlines are created equal. I use a specific type of chart that uses a New York close. Each 24-hour session ends at 5:00 p.m. EST, which is considered the unofficial closing time of the Forex market.

Draw The Main Support and Resistance Levels

Apart from step 1, this is the most important piece of the whole process. Think of the drawing of key support and resistance levels as the foundation of your home. It is impossible to identify favorable swing trades without them. Before showing you, some examples using swing trades, let’s define the two types of levels.

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