Swing Trading Systems

Swing Trading Systems for Big Profits!

Swing Trading systems are very popular and there are a huge amount of swing trading courses, e-books and software, for traders to choose from.

Traders have a choice, they can either buy a ready made system from a vendor, or they can build their own.

Here we will look at the points to consider when buying one and also an introduction on building your own.

Let’s start with buying a swing trading system from a vendor.

Here are the key points that you need to consider:

1. The methodology

If are swing trading stocks, or swing trading forex, you need to keep one thing in mind above all else:

You must understand the systems methodology and be able to have confidence in it to Make money longer term.

If you don’t have confidence that the methodology will work, you will never follow it with discipline and discipline is an essential ingredient of success.

If you don’t have the discipline to follow a method through losing periods, you really have no method in the first place.

You should never follow any swing trading system blindly, even if you are buying one – you need to understand how and why it works.

2. Does it suit your trading personality?

Swing trading systems vary in terms of their approach; some are higher risk than others, so make sure that you buy one that fits your trading personality and your risk tolerance.

3. The track record

While a track record does not guarantee future profitability, it does give you confidence that the logic is soundly based.

Look for a real time track record of profits over a two year period or more.

Always be wary of hypothetical track records.

Keep in mind they are designed in hindsight knowing the closing prices!

They should be treated with caution, as we can all make a track record look wonderful if we know how the market closes.

4. Other considerations.

Use common sense, go with your gut feeling about the vendor, try and find out as much as possible about them and their experience.

Another consideration is to look for a money back guarantee.

This will give you the comfort that you will get your money back if the swing trading strategy presented does not work, or live up to your expectations.

Building your Own swing trading system

You don’t have to buy a swing trading system from a vendor, you can learn swing trading yourself and it’s not as hard or as daunting, as many traders think.

In fact anyone can do it!

Here we will give you the salient points to help you devise your own swing trading strategy and build a robust system that works.

Here are some swing trading tips that will help you build a trading system of your own.

The methodology

The methodology of any successful swing trading system should be based around support and resistance and price momentum.

You need to look at support and resistance and then tell which way prices are likely to go by looking for shifts in price momentum to confirm your entry to the market.

To check support and resistance use the following indicators:

Trend lines, Bollinger bands, moving averages and MACD.

To check momentum and decide which way prices are likely to go the best two indicators you can use are:

Stochastics and Relative Strength Index RSI – These are the two best momentum indicators for timing swing trades, but you can consider others such as Average Directional Movement ADX and a few others.

The important point with any swing trading system is to keep it simple and robust, so it’s easy to understand and apply with discipline.

You don’t get your reward from being clever in swing trading, but by being right about market direction.

It’s a fact, that simple swing trading systems work far better than complicated ones, as there are less elements to break.

Our own swing trading system incorporates just 4 different indicators to look at and that’s it and it works.