Forex swing trading is one of the more commonly used trading strategies among traders. This is because the market is always moving in swings and it will be great if you are able to correctly capture one to trade with. The good thing about the Forex swing trading strategy is that you will be able to trade it everyday because of its high occurrence rate.

However there are several factors you have to take note if you want to use Forex swing trading strategy

1) Time of Trading: If you have been trading and have been reading the chart, you will find that there are swings that are very small and only a few that have big movement. As a trader, we are interested in those big swings as they are more profitable for us. The power of the swings depends on the time we are trading it. The recommended time to trade this strategy will be during the London Open, London Close, New York Open and New York Close as these are time where the commercial traders take their position and exit their position.



2) Fakeouts: The number one enemy of traders is the fake out. This is the false movement of the market in a particular direction leading you to enter a trade and then the price suddenly reverses and stops you out.

Fake outs are very common in trading and if you want to be profitable in the long run, you need to find out how to reduce fake outs in your trading.

3) Exit Strategy: Trading is never complete without a good exit strategy. As a trader, it is very important for you to know the exact exit position before you enter a trade. Without a properly plan exit, you will find the market taking back all the profit you have accumulated with the right entry you have made.

The above 3 factors are the key to successful forex swing trading and you should be spending time fine tuning your strategy to make it more consistent and profitable for you in the long run.

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