A swing trader may have started as a day trader. As the market kept moving in the desired direction, either they scaled out of a portion of the position, set a stop loss objective and kept the trade running.

So, many day traders eventually end up being swing traders when they see the trend continuing and dont wont to let go the opportunity of riding the trend. A swing trader is also considered to be a mini position holder. Swing traders need to focus on higher degree time frames and spend less time on 5-15 minutes time frames regardless of how swing trading started.

5-15 minute time frame charts are for the day traders, most of who are scalping. 5-15 minutes charts will generate too many short term signals if you are a swing trader holding a position for a few days. The most reasonable time frames for a swing trader are the 60 minutes (hourly), 240 minutes (4 hourly) and the daily charts.

Swing traders should give more attention to the daily, weekly and the monthly pivots as far as the pivot point trading is concerned. This information will help them to identify potential entry or exit targets but also help to be aware of the confluence of any support or resistance.

You are not so much concerned with long term macroeconomic conditions as you are with riding a momentum wave when you are day trading. The same is also true for swing trading. As a swing trader you are simply looking to ride from a move and profit from it. This is your job.

In short term trading conditions change. You need to capture opportunities as they arise. Forex markets are ideal for momentum trades. The forex market tends to trend well over the course of 3-10 days. This allows swing traders opportunity to capture larger price swings over a given period of time.

Forex markets are open 25/5 except on weekends. You have access to the forex market over the 24 hours period unlike the equity markets. This is the biggest advantage that forex markets have over stock markets. Therefore, you can monitor your positions, place stops and take action to exit a trade at any time, day or night.

The fact that the forex market is a 24 hour market and because of the time frame involving several days in swing trading, swing trading is slightly more advantageous in forex markets. Due this continuous market action there are very few time that gaps occur in the currency pair prices, this makes forex markets more suitable for swing trading as compared to the equity markets.

So if a day trade moves sharply in your favor, carry it through the overnight session. However try not to hold a position over the weekend. If the trade starts making money in your favor from the let go, your entry was correct. Do not carry your losing position to the next session.

Never get fancy and try to get a better fill by placing limit orders when you enter a bona fide trading signal. Go to the market before your competitors. Wait until the close of the period to confirm the signal. Never anticipate that a signal will happen.

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Determining your trading style is very important right from the beginning. Not knowing what type of a trader you are can make or break your trading career. Take the analogy of a cricket team. There are 11 players in each team in the match. All players are talented and super fit. Everyone can throw and catch the ball.  However some are more skilled at balling. Others are more skilled at batting. If the baller is going to do the job of the batter, not many runs will be made and the match will be lost. Investing in the markets is also the same. It depends on your personality makeup what type of trading is best suited to you. In general there are three types of trading: Positions trading, swing trading and day trading.

In Day Trading, you attempt to capitalize on intraday movements with the markets often trading on momentum and news. Day traders are also known as Kings of Stress. Day trading is not easy and it is certainly not a hobby. Sometimes when the positions warrants holding for a longer period, day trading can become swing trading! Day trading is ideal for those who are able to handle erratic market movements while actually also having time to monitor the positions throughout the day. You should note that if you dont have time to watch your trades every moment, you should not think of day trading. Day trading is the riskiest of the three trading styles.

You Should Know That Swing Trading Is a Better Alternative to Day Trading. Day trading hardly ever ends up well! Only 10% of the day traders succeed. Many people are attracted to the glamour and excitement of day trading. Most day trader usually blow up their accounts and fade away soon especially if the trader has no previous professional trading experience. Swing trading can be on the other hand a much more effective trading style especially if you are a newer trader. By holding positions overnight and even for a few weeks, you can expose less money for larger moves. If you are a new trader, think about it for a moment. In case of currency trading, the cost of trading is hidden in the bid/ask spreads offered by the broker. 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 the end, if you are unable to breakeven, you cannot survive long in day trading. So the more you day trade, the higher your trading cost will become.

Swing trading also entails facing stiff trading cost. These trading costs come in the shape of spread in case of currencies or commissions per each trade if you are trading stocks. But these trading costs are nothing as severe in swing trading as in day trading. Price action spans several days to several weeks in swing trading. Market fundamentals can come into play to a larger degree in swing trading as compared to 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. Swing trading can also generate higher potential profits on single trades because the holding period is longer than in day trading.

There is a misconception that day trading can be taken as a hobby. Day trading demands lots of attention and time commitment from you. It is stressful and a winning position can turn into a losing one within seconds. You have to have strong nerves, if you want to permanently take on day trading. 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. Currency markets are open 24/5. You can trade anytime of the day. You can enter or exit a position even late hours. Swing trading currency markets can be very profitable. Now the good thing about swing trading is that you can take it full time or part time. 

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