While swing trading can be used on any market, the information and examples on this site will be confined to forex swing trading.  There is no reason you can’t use what you discover here to swing trade stocks, bonds, precious metals or any other kind of market.

For swing trading to be effective, you must trade a market that is:

• Actively traded
• Has a tendency to trend

These two traits are essential for a swing trader to be able to ride the waves as price pivots or moves from one level to another.

There are a vast number of currency pairs on the forex market that can be traded, but the most suitable for swing trading is the EUR/USD.  This currency pair is recommended as it is heavily traded making it very liquid and because it exhibits a good level of trendiness.  Price typically swings back and forward from one price level to another.

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In the above screenshot of the EUR/USD, you can see the swings or waves of price movement.  The price movement is very steady and smooth flowing.  The EUR/USD tends to trend well in one direction with smooth price action.  Regardless of the market you want to swing trade, the price action should be smooth with price moving in an almost wave like patterns.

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The above screenshot is an example of market that would be difficult to swing trade.  The price movement is erratic, with almost no warning of the direction it is about to move in.  Price does not move in waves and instead jerks and jumps around in an almost sideways fashion before blasting off in one direction.

Does this mean you can’t trade other currency pairs?  Of course not.  However, if you are just starting out I would strongly recommend sticking to the EUR/USD until you are experienced and have a greater understanding and feel for swing trading.

Swing trading forex or stocks is the best business in the world.  Here is why:

• No office rent – No longer do you have to deal with realtors, lawyers and government offices.

• No staff – No longer do you have to deal with the stress of managing staff and ensuring everything runs smoothly.

• No stock/inventory – No longer do you have to buy/sell physical stock nor worry about having stock that you can’t move/sell.

• Instant borrowing power – Increase your leverage and gain instant access to more funds for trading.

• Instantly close/open the business – Close and “open” your business whenever you wish.

• Unlimited scaling – Scale your business to whatever size you wish by simply increasing/decreasing your positions.

There is no other business in the world that offers these benefits listed above that swing trading does.