Lets look at choosing a swing
trading system that can be you some great capital gains Ė so
what makes a successful swing trading system?
Letís find out.
Firstly letís give our
definition of swing trading
The object of a swing trading
strategy is to make money from the intermediate swings
within the longer term trends and these typically last for a
few days or a few weeks Ė this is not day trading!
You cannot make money day trading as
there is no reliable data - so donít try.
Ok letís look at buying one from a
vendor and points to consider
Here are some points to consider when
buying a trading system from a vendor:
1. Understand the logic
If are swing trading forex stocks, or
futures you need to understand EXACTLY how the methodology works and
why it will be successful.
You must understand why the system
will work because you are going to have to have the discipline to
follow it through losing periods and this only comes from
understanding and confidence.
So if you buy a forex swing trading
system donít follow it blindly, understand everything about it. You
need the discipline to follow a trading system through losing
periods, or you have no method in the first place.
Swing trading is essentially simple
and the method should be easy to understand and apply.
2. Does it suit your trading
Swing trading systems vary in terms
of the risks they take and the drawdowns they incur - make sure that
you buy a swing trading system that suits your personality and your
3. The track record
While a track record does not
guarantee future profitability, it does give you confidence in its
ability to make money and what it is capable of.
Look for a real time track record of
profits over a two year period of trading.
Donít trust hypothetical track
records these are done knowing the closing prices and really if you
know the closing prices its easy to make a profit!
4. The vendor
Find out as much as possible about
the vendor and their trading experience Ė many systems are sold by
failed brokers or marketing people, who simply make up a
hypothetical track record, so be wary before buying.
Look for a money back guarantee if
possible. This will give you the comfort that you will get your
money back if the swing trading system you are being sold does not
live up to the vendors claims.
Swing trading is great for novice
traders as it provides regular trades and plenty of action while
hitting the high return low risk trading opportunities.
Trading opportunities also do not
take long to complete and the result is quickly known Ė hopefully in
the swing traderís favor!
There are some great swing trading
systems you can buy and get the right one and you could be making
some great regular capital gains from your system Ė Just be careful
in your selection and follow the above tips.
by Kelly Price