Swing trading in forex market trading denotes transactions undertaken in the direction of the major market trend. These traders prefer to trade in the G7 major currency pairs since these are normally more liquid compared to cross currencies and emerging market currencies. For example - when choosing between the two currency pairs Australian Dollar/ Japanese Yen and Euro/U.S. dollar, a Swing trader will prefer to trade in the latter pair.
A day trader for example has to complete his entire trading transaction in a single day. Hence day trading forex currency requires the trader to remain vigilant and track currency price movements continuously. This is done with a view to exit trades at the first available opportunity. Trend traders on the other hand have the benefit of carrying forward their deals. These traders simply trade in the direction of the market trend and are referred to as Swing traders.
In currency forex market, it is difficult to pinpoint a single best forex trading style. Forex traders differ in terms of their individual personalities, risk taking abilities and emotional balance. Most traders choose a trading style that suits their personalities the best. Swing trading style is a long term trading style. Trade positions are held open by swing traders for periods ranging from couple of days to weeks.
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