Read Relevant Posts Explaining Forex Swing Trading Gains, Setting Profit Targets to Maximize Probable Gains – Forex Swing Trading in 20 Minutes.
A really great profit target not only creates a great reward-to-risk ratio, but also has a good chance of being reached. It is a balancing act between maximizing the return, while giving the market a reasonable chance of hitting that target (within a reasonable amount of time–this will vary by trader’s timeframe).
In this video I show how I maximize returns, to create trades with 8:1, 13:1 and even 20:1 reward to risk ratios based on market structure. That means that even though we are making a huge return, the market has shown a tendency to reach these sorts of targets, and there is a good chance it can do it again.
The market provides these types of opportunities many times each month, so they are not rare. Even if you win only 1 or 2 trades out of 10, you can make huge returns by maximizing your reward:risk with this approach.
If you are placing good entries, reading price action well, setting your targets at good levels (based on the structures playing out) you can potentially push that win rate up to 4, 5 or 6 winning trades out of 10. And when you are making 10% on winners and only losing 1% on losers (that’s account value, it doesn’t really have anything to do with the percentage movements of the forex pair) the gains pile up fast.
It’s important to watch the other videos in the Forex Swing Trading in 20 Minutes video series to see the entry and risk management methods that work well with this profit target strategy.
Forex Swing Trading in 20 Minutes – Pairs to Follow and Setting Up Charts: https://www.youtube.com/watch?v=lwZEACzahec
Forex Swing Trade in 20 Minutes – Time Frames and Trend Trading Strategy https://www.youtube.com/watch?v=WWvwvigX8eM
Forex Swing Trading in 20 Minutes – Crotch Strategy and Strong Support and Resistance: https://youtu.be/LbdfQDN4-WI
Forex Swing Trading in 20 Minutes – Position Size and Risk Management: https://www.youtube.com/watch?v=DbTWhEwHz_I
As always, find out more at my website: https://vantagepointtrading.com/ and in my Forex Strategy Guide eBook: https://vantagepointtrading.com/forex-day-trading-and-swing-trading-strategy-guide
Forex Swing Trading Gains, Setting Profit Targets to Maximize Probable Gains – Forex Swing Trading in 20 Minutes.
Swing Trading Methods
A swing investor tends to search for multi-day chart patterns. Some of the a lot more common patterns include relocating average crossovers, cup-and-handle patterns, head and shoulders patterns, flags, and triangulars. Trick turnaround candle holders may be made use of in addition to various other indicators to create a strong trading strategy.
Ultimately, each swing investor creates a plan and method that provides an edge over lots of trades. This entails trying to find trade configurations that have a tendency to result in predictable activities in the property’s cost. This isn’t easy, and no method or setup functions every single time. With a positive risk/reward, winning every single time isn’t needed. The a lot more favorable the risk/reward of a trading method, the less times it requires to win in order to create an overall revenue over lots of trades.
Swing trading entails taking trades that last a couple of days approximately numerous months in order to profit from an awaited cost action.
Swing trading subjects a trader to over night and weekend risk, where the cost could space and open up the following the session at a significantly various cost.
Swing investors can take earnings utilizing a well-known risk/reward ratio based on a stop loss and revenue target, or they can take earnings or losses based on a technological sign or cost action activities.
Locate Potential Professions
Next off, the investor will scan for possible trades for the day. Generally, swing investors will get in a position with a fundamental driver and take care of or exit the setting with the help of technical evaluation. There are 2 good ways to locate fundamental drivers:
Unique possibilities: These are best discovered through SEC filings and, in many cases, heading news. Such possibilities may include initial public offerings (IPOs), insolvencies, insider purchasing, acquistions, takeovers, mergers, restructurings, purchases, and various other comparable occasions. Generally, these are discovered by checking specific SEC filings, such as S-4 and 13D. This can be easily finished with the aid of websites such as SECFilings.com, which will send alerts as quickly as such a declaring is made. These types of possibilities often bring a big quantity of risk, yet they provide lots of incentives to those who very carefully investigate each opportunity. These types of plays include the swing investor purchasing when most are offering and offering when everybody else is acquiring, in an effort to “discolor” overreactions to news and occasions.
What do swing investors search for?
They are typically greatly traded stocks that are near a key support or resistance degree. Swing investors will search for numerous various types of patterns made to forecast outbreaks or breakdowns, such as triangulars, channels, Wolfe Waves, Fibonacci degrees, Gann degrees, and others.
Read Relevant Posts Explaining Forex Swing Trading Gains.