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Here we will look at a Forex trading method which makes big profits in just 30 minutes a day and even better, its easy to understand and is perfect for novice traders. The trading method is Forex swing trading so, lets look at swing trading in more detail... The concept of swing trading is simple and based on human nature; traders are human and all humans, are governed by the emotions of greed and fear. When greed is present, they push prices to far to the upside and when fear is present, they push prices to far to the downside. You can see this on any price chart, as a short term price spike and another thing you will notice is - these price spikes don't last long, they soon fade and come back to fair value. The aim of the swing trader is to sell into greed in a bull market and buy into fear, in a bear market and make a profit as prices come back to more realistic levels which reflect fair value. In the example below, we will look at how to swing trade in a bull market but the same theory applies, in a bear market - Look for a short sharp price spike to the upside in a bull market and look to see how overbought the market is. - To find out how overbought a market is overbought, you need to look at some momentum indicators which will visually tell you how overbought the market is and good ones to use are - the stochastic the RSI, ADX and MACD. Use two and wait, for momentum to turn down, as prices are still rising and enter a short trade. This is known as divergence and is a warning sign of a price change. - Once you have entered a short trade, place your stop above the price, set a target above support and then take profit. - With swing trading its vital, to put your target just above support and get out, in case prices rebound back to the upside. The above Forex trading method is simple and will always work, because human nature will always push prices from fair value when greed and fear, take hold. Sure its a simple strategy but all the best strategies are and if you use it correctly, you will be able to make big profits in just 30 minutes a day. NEW! 2 X FREE ESSENTIAL TRADER PDFS
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