Breakdown of swing trading time allocation
Here are some personality traits and situations which would make you more suitable to be a swing trader.
- You have a day job and a family.
Having these 2 commitments usually leave little time for trading and the last thing you want when trading is for your children to drag you to a game of hide and seek. In such situations, it is best to find some time over the weekend to do your analysis and on a daily basis, you just refresh your levels and see if any of your trades are reached.
- You have tried trading in higher frequencies and realized you’re horrible at it.
The funny thing about trading is that every part of the human body is designed to be bad at trading. The last thing we want is to put the odds further in our favour by picking a style you trade bad at. If you find that you’re bad at shorter term trades particularly because you close trades off early or can’t handle the emotions when the trade goes against you, then my best advice is so stay away from such forms of trading.
- You’re naturally really patient.
Whilst this is a good characteristic for traders in general, it is particularly good when you’re into swing trading as you usual have to wait for hours just for your trade entry to be reached and wait even longer for the trade to close. Having patience is really important in such a trading approach.
- You’re able to detach yourself from situations and tasks.
This is a very important characteristic of swing traders especially when your trade entry is reached and you have an open trade. The reason for this is because unlike other traders who only have trades opened for a portion of time, as a swing trader with an open position, your trade is opened 24 hours a day. If you don’t detach yourself from it and instead keep monitoring it every hour, it willcompletely consumer you and greatly affect your trading.
If you find yourself in such situations and with such characteristics, then the swing trading route is for you in this forex journey.
This is a very crucial realization and decision you have made. Realizing your trading style is one of the most important foundation required to be a successful trader. From this trading style, you will build your entire approach to trading and ultimately grow your trading business from.
Similarly to the day trader’s approach, as a swing trader, you need to make plans around your day/week to find time for trading and analyzing.
The first thing to do as a swing trader is to plan your trading around your day :
- When are you most free during the weekend?
- Do you have any time to spare during the weekdays?
Find pockets of time of at least 30 minutes to 1 hour to allocate towards your trading. Most of what you’ll be doing is placing pending orders on your strategies and waiting for them to be filled. As a swing trader, the best approach is to pick the best trading strategies, implement them once the market opens on a Monday, then let it be for the rest of the week.
The second thing to do as a swing trader is to learn technical analysis.
As you would be spending 80% of your time on charting, it is absolutely crucial that you learn the art of technical analysis. Here are some articles on technical analysis that we use at The Forex Army which would get you started on your way to being a truly great technical analyst :
- Learn support and resistance
- Learn how to use the RSI in new amazingly profitable ways
- Learn how to use the Stochastic Indicator to trade profitably
- Learn how to Fibonacci retracements effectively
These 4 articles should get you started significantly in learning how we do technical analysis here at The Forex Army. I personally keep things simple and my chart clean using these 4 main approaches.
Once you have mastered these 4 main approaches, you can start using them in tandem with our TFA Sniper to find key turning points.
The third thing you should do as a swing trader is to swing by the live forex trading room (pun intended).
The live forex trading room has some of our best trading ideas on a day to day basis. Most trades last from a few hours to a couple of days. If you can swing by the trading room for just a bit at the start and end of every day, that will give you the necessary trading ideas to be executed on your live account and would save you time from analyzing the charts with the little time you have.
We’re adding in a feature soon where you’re able to click ‘trade this idea’ and the idea strategy would be directly implemented into your account.
Now that you have determined the type of trader you are, you can complete the bootcamp exam for stage 2 to properly assess your knowledge of the types of traders around and make a conclusive decision on what kind of trader you are. From there, you will know how to adjust your day to best suit your trading styles and needs.
You can take the bootcamp exam for stage 2 here : Stage 2 Bootcamp Exam
Do note that you need to have passed our Stage 1 Bootcamp Exam to be able to take this.