Is day trading better or swing trading in Forex?
New traders always ask if should I be a day trader where I enter and exit the market in one day or if should I be a good trader where I hold the position for longer than a day maybe a few days or a few weeks, it all depends on your current lifestyle and these three market factors Let’s talk about it below.
Real-time position in Forex
If we think we’re going to do that I see a breakout and I want to show you guys what we thought was going to happen and where we are right now here, take a look if you want to play that from a real-time perspective, you’re going to be looking to play those breakouts during the London session or during that early time in the U.S., current session, so now we’re getting a fairly minor breakout right now from the US dollar of $16.
The session started to take off maybe about an hour or so ago, it all depends on where you’re trying to ride that move, you know normally we trade a breakout strategy, so at that time the markets were trading at 1638, $1638 well before I show you oh Lease guys, I want to show you guys now another video that I posted just four or five hours ago about another opportunity to get in on the EUR/USD breakout moment.
Trading in small amounts in Forex
If you don’t want to take the risk of waiting for a pullback then you should only trade really small amounts and move the stops as quickly as you can, remember this is a very important breakout game, this is how we go right back to the strategy we use within the course where we only trade simple flag breakouts As momentum enters the market.
So here you guys a quick screenshot on both flags the breakouts that we’ve seen over the last 48 hours or so on the EUR/USD, this was a momentum breakout on the flag breakouts or our bread and butter, which is one of the main things we talked about throughout the course The whole thing and we were able to execute on both of these moves when it happened earlier this morning where you guys saw the markets had already broken out somewhat.
Entry positions do not last in Forex
I think the entry positions didn’t last both positions very long you can’t hang on to them and maybe some people are still on the first break of the flag that we saw yesterday and obviously some people were triggered this morning on this new flag break but again you can really be Outside of those positions but both these trades should have already reached your risk-reward parameters.
If you were a swing trader, you probably wouldn’t have entered into those trades because there probably wasn’t a signal right, the signal was back at the 16 dollar, so you probably would have thought you were late if you entered at the dollar in the 1630s, It all depends on whether you’re in and out of the market, where you’re entering, what your overall edges are, it all depends on people if you’re day trading or swing trading.
Don’t be a Forex general practitioner
It’s very important when you’re starting in the business that you position yourself as one or the other, don’t do both, I think that’s one of the first pieces of advice I’ll give you guys, because once you start doing both, you’re partnering with two very different market participants It is best to know a cardiologist.
Don’t be the general practitioner in Forex, the person who does everything and that person doesn’t make money, be the cardiologist The neurosurgeon in your strategy has to be good at one thing whether it’s day trading or swing trading, but one of the first things I want to talk to you about is About you guys regarding these three factors is the right lifestyle for your current lifestyle.
How do you day trade?
Practice is what will determine whether you can day trade or whether you can swing trade properly, for example, the average day trader will usually have to spend a few hours a day staring at a chart, so when you are involved in the forex market for everyone Speaking of the London breakout that happens at 3 AM ET well again, if you’re in the US, of course, you’re going to have to adjust your lifestyle around momentum trading around market participants participating right.
And if not if 3 am is too early for you or too late if it’s noon and you’re on the West Coast, they’ll have to start sharing around noon at 9:30 which is the usual time when These US markets begin to open up.
Buy Euro against US Dollar in Forex
As a day trader, we wanted to buy EUR/USD and as a swing trader, we wanted to buy EUR/USD, well that’s a very important element as well, there are those higher time frames if you’re a day trader you need to evaluate the markets on those higher time frames so that Don’t get caught up in that way you know in some short term momentum in the opposite direction and then what this higher time frame shows you well so the bounce is great for swing trading it allows the markets the stops have to be a little bit bigger because you don’t know when this is coming The limit is correct, so the trader needs to exit the order.
Summary
The US FX futures market starts to open up around eight in the morning, and that’s also during a cross-section of when the euro market is kind of at lunch and when the US markets start, so you start to get a little bit of volatility around the hour number. 6 am to 8 am I talked about this at my best time in this article.
