Why is swing trading difficult? We will explain the countermeasures. Swing trading is an investment method that holds positions for a longer period (several days to several weeks) than day trading and aims to make a profit by taking advantage of medium-term price fluctuations in the market. However, many traders find swing trading difficult. We will explain the main reasons and countermeasures.
What is swing trading?
Swing trading is an investment used in stock prices, stock investments, FX, etc. Swap points occur across days, but it is a method that does not require detailed techniques. Profits are not guaranteed, but you can use technical analysis to identify rising situations and make purchases. It is a recommended investment for beginners to start.
Differences from day trading
There are differences from day trading. Unlike swing trading, which is viewed in the medium to long term, day trading is a short-term investment that competes with the flow of one day. Day trading makes it easier to settle. It is recommended to use them according to your purpose later. In either case, the same information and knowledge of indicators is required. In the market, the basic principle is to change the content depending on the product and style and fight. It is the basis of trading, and both are allowed by securities companies, etc.
Essential skills for investors
Swing trading and day trading are essential skills for investors. You need to practice, get the hang of it, and continue to win. You need to identify opportunities and decide on a strategy yourself. Investors invest by predicting future volume. In the content, you need to predict the future and fight, whether it is an investment trust such as NISA. As a result, these require technique, but you need to fight while keeping an eye on the upcoming daily and weekly charts.
Why is swing trading difficult?
Why is swing trading difficult? Many traders find swing trading difficult. We will explain the main reasons and countermeasures. It is said that swing trading is the strongest way to fight in stocks and FX stocks, both in spot and futures. It is said that millionaires are accustomed to it and the profit margin is high, but it is difficult to get used to it.
The difficulty of predicting market fluctuations
In swing trading, you need to predict short-term market trends. However, the market is always fluctuating, and it is not easy to accurately predict its movements. Since various factors such as economic indicators, news, and policy changes have an impact, advanced analytical skills and experience are required to determine medium-term movements.
Countermeasures:
It is important to hone your skills in accurately grasping trends by using chart analysis and technical indicators (moving averages, Bollinger bands, RSI, etc.). In addition, by using fundamental analysis in combination with the market to confirm the long-term direction of the market, more accurate predictions can be made.
Emotional control is difficult
Swing trading involves holding positions for several days to several weeks, so the market often moves in the opposite direction to your expectations. If you sell in a hurry out of fear or anxiety when your position becomes negative, you may not be able to make profits as planned. In addition, even if the position becomes positive, there are cases where you are greedy and miss the timing to take profits.
Measures:
It is important to set stop loss and profit taking lines in advance and strictly adhere to them. The key to success is to not be swayed by emotions when trading and to respond calmly based on a plan.
Risks during the holding period
In swing trading, positions are held for more than a few days, so there is a risk that off-market events at night or on weekends (political announcements, natural disasters, unexpected economic news, etc.) will have a significant impact on prices. It is difficult to avoid such risks, and unexpected losses may occur, especially if there are sudden fluctuations while holding a position.
Measures:
To minimize risk, it is effective to always check market news and event schedules when doing swing trading and adjust your position before high-risk events. In addition, by properly managing your position size, you can avoid fatal losses even if there are unexpected movements.
Difficulty in determining the sustainability of a trend
In swing trading, it is very important to determine the sustainability of a trend. If you mistake a short-term rebound or temporary price fluctuation for the beginning of a trend, you may not see the expected price movement and incur losses. Determining whether a trend is real is a challenge for many traders.
Measures:
In swing trading, it is effective to check the trend on multiple time scales. For example, it is effective to check the trend on a daily chart and then determine the entry timing on short-term charts such as 4-hour and 1-hour charts. In addition, trend-following technical indicators (such as MACD and ADX) can be used to more accurately grasp the strength and sustainability of a trend.
Difficult to establish a trading strategy
In swing trading, it is important to trade based on a clear strategy and rules. However, many traders trade haphazardly without a strategy, and end up incurring losses. If your plan is unclear, such as entry and exit criteria and risk management methods, you will be at the mercy of market fluctuations.
Measures:
It is important to make a specific trading plan in advance. The key to success is to clearly set entry conditions, stop loss lines, and profit lock-in lines, and strictly adhere to those rules in trading. Also, looking back at past trades and finding areas for improvement can help refine your strategy.
Difficulty in money management
In swing trading, you hold positions for a longer period of time than in day trading, so money management is more important. Without proper risk management, a single large loss can significantly reduce your funds, making it difficult to continue trading again. One of the causes of losing funds is “revenge trading,” where you take a large position without planning and try to get it back all at once when you suffer a loss.
Countermeasures:
As part of risk management, it is recommended that you limit the percentage of your risk in one trade to within 2-3% of your funds. Calculating your position size and minimizing losses is a basic money management method for succeeding in swing trading.
Introducing overseas FX with high contract power
Now, let’s introduce some overseas FX companies with high contract power. We have selected some very popular and reliable brokers and compiled them into a list, so we hope you will find it useful.
XMTrading
XM actually has three companies. When you search online, you will find three hits: XM.com, XMtrading.com, and XMGlobal. Among them, XMTrading offers a comfortable environment for Japanese users, and is highly recommended as it has KIWAMI and Zero accounts.
| Brand name | XM | XMTrading | XMGlobal |
| Operating company | Trading Point Holdings LTD | Tradexfin Limited | XM Global Limited |
| URL | www.xm.com | xmtrading.com | xmglobal.com |
| location | Cyprus | Seychelles | Belize |
| license | FCA、ASIC、CySEC | FSA | IFSC、DFSA、ASIC、CySEC |
| Service Countries | Europe | Asia | others |
FXGT
FXGT is a relatively new FX company established in 2019. The operating company is 360 Degrees Markets Ltd., with a registered address in the Republic of Seychelles. Originally, they also offered services called Global GT and Crypto GT, but they were merged into FXGT in 2023. Of course, they also have a financial license, so you can rest assured that they have a high reputation among people. In the past, they have added many bonuses, and they are a good deal as they are a top-ranked broker.
| Operating company | 360 Degrees Markets Ltd. |
| Registered address | セーシェル共和国 Room 12, First Floor, Kingsgate House, Victoria, Mahe, Seychelles |
| Financial License | FSA: Seychelles Financial Services Authority |
| Established | 2019 |
Axiory
Axiory is an overseas FX broker established in 2015 by Axiory Global Ltd. Axiory is headquartered in Belize and incorporated as a “tax haven”. It has obtained the IFSC license from the Financial Services Agency of the Belize International Financial Services Commission, making it a very reliable and safe FX broker.
| Operating company | Axiory Global Ltd. |
| Established | 2015 |
| location | No. 1 Corner of Hutson Street andMarine Parade Belize City, Belize |
| Financial License | IFSC: Belize International Financial Services Commission |
Bigboss
BigBoss is an FX company established in 2013. It is based in Saint Vincent and the Grenadines and is operated by Prime Point LLC. It has a good reputation among traders and has not experienced any major problems or withdrawal refusals, so it can be said to be a very reliable company.
| Company | Prime Point LLC |
| Found | 2013 |
| Address | 1/F, First St Vincent Bank Ltd Building James Street Kingstown St. Vincent and the Grenadines |
| License | SVG FSA |
easyMarkets
easyMarkets was founded in 2001, making it by far the oldest company among overseas FX brokers. It is operated by EF Worldwide Limited, and is an FX broker based in the Marshall Islands. The Marshall Islands are a tax haven, so they tend to be the base of FX brokers.
| Operation Company | EF Worldwide Limited |
| Address | Ajeltake Road, Trust Company Complex, MH 96960, Ajeltake Island, Majuro, Marshall Islands. |
| License | CySEC,ASIC,FSA,FSC |
| Found | 2001 |
| URL | Click here |
Exness
Exness is a world-famous FX brand founded in 2008 with global expansion. It is a multinational corporate group that has obtained official financial licenses in multiple countries, including European and overseas subsidiaries and affiliates. As of April 2022, it boasts a trading volume of over 2105 trillion dollars.
| Operating company | Exness Limited |
| Registration number | 8423606-1 |
| Country of registration | Japan-Seychelles Relations |
| Company Address | 9A CT House, 2nd floor, Providence, Mahe, Seychelles |
| Established | 2008 |
| Number of Employees | 1054 |
| URL | Home Page |
| telephone number | (+248) 4346767 |
| email address | support@exness.com |
| Financial License | Seychelles Financial Services Authority |
FBS
FBS is an FX broker based in Vanuatu. Founded in 2009, it is a FX broker with a long history of operation. It has successfully expanded globally and has branches all over the world. It also has a financial license. It is well-known among overseas FX brokers, and deposits and withdrawals are safe.
| Operation Company | Mitsui Markets Ltd. |
| Established | 2009 |
| Address | 133 Santina Parade, Elluk, Port Vila, Efale, Vanuatu |
| License | VFSC、IFSC、CySEC |
HFM
The company profile of HF Markets is as follows. The company name has always been Hot Forex, but it changed to HFM in 2022. HFM is a very popular company, especially in Europe, and has won more than 60 awards, so it is very popular and well-known.
| Company Name | HF Markets(SV)Ltd |
| CEO | – |
| Found | 2010 |
| Address | Suite 305, Griffith Corporate Centre, P.O. Box 1510, Beachmont Kingstown, St. Vincent and the Grenadines. |
| Capital Stock | ? |
| Number of employees | 250 |
| support@hfm.com | |
| Licence | IBC No: 22747 IBC 2015 St. Vincent and the Grenadines |
| URL | Home Page |
iForex
iForex is a very long-established FX company, and this alone makes it trustworthy. The operating company is Formula Investment House Ltd, which was established in 1996, so it has a history of 30 years. It is based in the British Virgin Islands and has a financial license registered with the Financial Services Commission of the British Virgin Islands (BVI FSC).
| 運営会社 | Formula Investment House Ltd |
| 設立 | 1996 |
| 所在地 | 1, Wickham’s Cay, Road Town,Tortola BVI VG1110 |
| 金融ライセンス | BVI FSC：英領バージン諸島金融サービス委員会 |
IronFX
IronFX is a globally expanding FX broker established in 2010. As service information is provided worldwide, there are many registered users in Europe, Asia, the Middle East, Africa, and Latin America, and awareness is increasing. IronFX is recognized as a fast-growing FX broker, and in 2012 it won the Best Trading Platform 2012 award.
| Broker | IronFX |
| Established | 2010 |
| Headquarter | Cypros |
| Service Area | Europe Asia Africa Oceania North America South America |
| License | CySEC FCA ASIC |
| Address | 2, Iapetou Str., Agios Athanasios, 4101 Limassol, Cyprus |
| Tel | +44(0) 203 282 7777 |
| Owner | Markos A. Kashiouris Peter G. Economides |
| Company Name | Notesco Limited |
| URL | Home |
LandPrime
Land-FX is an FX broker established in 2013 by the operating company Land Prime Ltd. It has been in operation for over 10 years, so it can be said to be a fairly established broker. Its greatest appeal is its narrow spreads and high contract power, and it has traders all over the world.
| Operation Company | Land Prime Ltd. |
| Established | 2013 |
| Address | ? |
| License | SVG FSA |
| URL | Home |
MILTON MARKETS
MILTON MARKETS is an FX company established in the Republic of Vanuatu in 2015. It is regulated by the Vanuatu Financial Services Commission and has a financial license from the VFSC, so it is a very reliable company.
| 運営会社 | Milton Markets Ltd. |
| 設立 | 2015 |
| 所在地 | バヌアツ共和国 2nd Floor, Transpacific Haus Lini Highway Port Vila, Vanuatu |
| 金融ライセンス | VFSC：バヌアツ金融サービス委員会 |
GeneTrade
GeneTrade is an FX service company established in 2018 by the operating company Genius Trading LTD. The company is headquartered in Belize and holds a financial license from the Belize International Financial Services Commission (IFSC), so it is operated under regulations.
| Operation Comapany | Genius Trading LTD |
| Found | 2018 |
| Address | 5 Cork Street, Belize City, Belize |
| License | IFSC |
TITANFX
TITANFX is an FX company established in the Republic of Vanuatu in 2014. It offers a wide range of services, including free VPS, free EA, and copy trading, and is highly recommended. The maximum leverage is 500x, so you can deposit and withdraw funds with peace of mind.
| Operation Company | Titan FX Limited |
| Establishment | 2014 |
| Address | Pot 564/100, Rue De Paris, Pot 5641, Centre Ville, Port Vila, Vanuatu |
| Financial license | VFSC |
TradersTrust
It is now TTCM TRADERS CAPITAL LIMITED, a group of companies that operate TradersTrust, and was founded in 2009. It is headquartered in Cyprus and is regulated by the Cyprus Securities and Exchange Commission (CySEC), which is difficult to obtain.
| Operation Compamy | TTCM Traders Trust Capital Markets Limited (ltd) |
| Found | 2009 |
| Address | 3 Thalia Street, Office Number 310-318, 3rd Floor, 3011, Limassol, Cyprus |
| License | CySEC |
Axi
We will explain the basic information of Axi. Axi is an FX broker established in Australia in 2007. Of course, it holds a license from the Financial Services Agency and is one of the famous brokers with many users. All account types offer up to 1,000 times leverage.
| Broker | Axi |
| Established | 2007 |
| Max Leverage | 1000x |
| License | SVG ASIC FSA |
| Trading Tool | MT4 |
FXPRIMUS
The basic information of FXPRIMUS is as follows. Naturally, it holds a financial license and is operated under strict regulations. It has bases in Vanuatu and Cyprus and has obtained licenses from the financial authorities of each country.
| Broker | Primus Markets INTL LTD(Cyprus) Primus Global LTD(Vanuatu) |
| Location | Cyprus Vanuatu |
| License | CySEC VFSC |
| Established | 2009 |
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