If you have ever wanted to gain a true trading edge over the market then the best thing anyone could ever do is master the art of swing trading. Trading is a risky business and you need to do everything you can to stack the odds in your favour. Many traders try to scalp the 1 minute and 5 minutes time frames believing that they will be able to strike it rich and make more than enough money from trading to change their lives. You can get rich from trading and it definitely will change your life but scalping and doing what most other forex traders do is not the answer. To be able to make money you need to have an edge and the best edge a trader could ever get is with swing trading. Not only will you be trading with the smart money but you will also be trading with a lot less stress.
Anyone who trades the one hour and lower charts is either looking to lose their trading account or is very experienced and knows what they are doing. The sad truth is that most people starting out with trading do not know what they are doing and were lured to the forex or stocks because they wanted to make some money. Swing trading relies on the higher time frames, primarily the four hour to daily, and this allows you to see the real trend in any given market. Scalpers are trading trends that sometimes last for seconds to just a few minutes, whereas swing traders are riding swings on major trends that can last for weeks and months. It is a lot easier to make money from a trend that lasts weeks instead of one that is only going to last a few minutes.
The other advantage you gain from swing trading is that of understanding and exploiting the concept of value. What is value? Value is basically a price that is lower than where a market may currently be. Professional swing traders always use value as a core component of their trading criteria. Why does the average Joe always lose on most trades? Simply because he gets in at a price that is overvalued and typically enters the market near the peak of any run. Professional traders know that they need to wait for value to present itself before they enter a trade. This means they get in at a price better than most private traders and they stand to make a heck of a lot more money because they were patient.
Swing trading also makes the use of price action ever so more effective. Price action on the 4 hour and daily charts can be extremely powerful and eerily accurate, much more so than some trading indicators ever are. By learning how to read price action and apply it to your trading you will be able to gauge the sentiment of the market and manage your positions much more effectively. You ll know when a trade entry setup may be forming, when the market may be consolidating and when it may be preparing to turn. While it is true you can use price action on any time frame, only the charts used for swing trading allow it to be so powerful and precise.
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