COURSE 6: Swing trading and intra-week trading

Swing trading

Basically, this is a type of short-term trading - but unlike scalping and intra-day style, positions in swing trading are held longer, from 2 to 7 days.

 

The swing trader is on the watchout for the moment when the asset price will reverse direction - shooting up or falling down, often depending on a certain fundamental news release. Because it is exactly the moment when your position should be opened.

 

Sometimes you have identified the “swing” moment, but miss a few ticks of the chart at its beginning. It is alright, as long as you manage to purchase or sell your asset during one of the next periods of this swing.

Swing trading: risk-taking or well-considered balance?

Remember that swing trading carries a number of risks that could become a trap even for a seasoned and disciplined trader. When opening a trade, one should learn to tell the difference between calculated action and merely taking a plunge. Sometimes a trade is opened just one second before the swing ends, and it takes a strong ability to stay calm when the market starts moving against you.

 

So, swing style is good for those who like to play it close to the edge - given that they have the right understanding of trader techniques and proper risk management plan.

 

Intra-week trading

This might be the next step for people who are not comfortable with scalping or day trading.

 

At first, intra-week traders may find the market boring - for lack of any real dynamics. This happens because in this trading style the short-term uptrends and downtrends are unimportant. What matters in intra-week trading is your ability to forecast how the asset price will behave in the long run.

Essentials of intra-week trading

Here are some essential features that will give you the idea about how intra-week traders operate.

  • Positions remain open from 1 to 10 days.
  • Even though the trend may continue, traders aim to close their positions within a week - taking most of the profit available in this period.
  • Usually, intra-week traders open 1 or 2 deals during a week.
  • You will have to invest more funds in comparison with day-trading.
  • The working time-frame of your trading charts will be Н4.

Benefits and drawbacks of the intra-week trading style

Consider the following points when deciding whether intra-week trading will be suitable for you.

 

Advantages:

  • Moderate psychological stress
  • Deals have higher profitability compared to more short-term trading
  • You will need significantly less time to rest and recover

Disadvantages:

  • Requires a considerable amount of deposit
  • There is a probability of missing the moment of trend correction and consequently, failing to close the deal profitably