People are always looking for opportunities to make their life better. But in the world of economic crisis, it’s really hard to find a stable source of income. Regardless of your qualification, you might have to choose a different profession only to ensure your living. This active problem in our society has been forcing the majority of the people to look for alternative source of income and this where the name of Forex trading comes first.
But before you jump into this investing world make sure that you have proper knowledge of this market. If you think that you can easily trade the market without having any proper knowledge then you will be failing like the 95% of the traders. Though there are many things that we can do to improve our trading career this article will give you clear insight to become a professional swing trader.
Enough trading capital: If you want to become a swing trade then you can trade the market with a small amount of deposit. In fact, the initial deposit requirement for swing trading system is significantly high. As a swing trader, you will have to set wide stop loss and take profit level. So if you are trading $1000 trading account then swing trading system will not work you. However, it will work if you trade with a lot size of 0.01 but this will not be enough to ensure your financial stability. But without learning the art of swing trading you should never deposit big amount of money. As a new swing trader, you should open a demo trading account with an initial balance of $10000 at least. Once you have your demo account ready you should start trading the market for at least six months and see how it goes. During your demo trading period, you should also work hard and learn all the basic elements of this trading strategy.
Financial backup for at least six months: Trading is something where you can no assurance that you will make money. If you take part in Forex trading Singapore then you will see that most of the professional traders have a strong financial backup since they know that losing month is very common for the traders. Instead of look for monthly profit, you need to focus on the longer time frame result. Always consider your return in the yearly time frame. Anything about 10% is significantly good return in the financial industry. So ask yourself whether you have all the money to support your family for the next 6 month before you consider swing trading system as your full-time profession.
Knowledge about wave theory: Elliot wave theory is very popular among the professional swing trader. When you start trading the higher time frame you need to find the retracement wave and endpoint of the corrective wave to determine the major swings of this market. It’s true that you can also use the Fibonacci retracement tools to do this but considering the long-term scenario, it will be hard for you to make a profit based on this only. So being an active swing trader the knowledge of Elliot wave theory is a must.
Strong patience: Patience is the key to success in swing trading. As a swing trader, you might have to wait for weeks to find a quality trade setup. Even after executing the trend it will take a huge amount of your time for the trade to hit your stop loss or potential take profit level. Sometimes the swing trader’s start using the lower time frame to get more trading signals but this is one the thing which will ruin your trading career. So it’s totally up to you whether you will stay patient or risk your trading capital. If possible learn the most used harmonic pattern in the Forex industry since it’s a great way to find the end point of a corrective wave.