Swing trading is very popular for Forex traders for two main reasons. Firstly, Forex swing trading strategies forex swing trading blogs contain entry and exit techniques that require checking the chart perhaps only once or twice each day, or at most every few hours.
This relatively relaxed schedule is very suitable for people with busy lives and full-time jobs. Most new traders that go for swing trading are taught to look for certain Forex candlestick formations, in alignment with support and resistance. In this style, traders are taught to be extremely selective in picking trades, and exhorted to stay on the sidelines unless everything looks perfect. It is certainly possible to make money trading like this, but it is hard for most people to make more than just a little profit with this style. Very few set-ups look perfect, so many trades are not taken.
This style can be very difficult psychologically, especially when the trader sits on the sidelines and sees a great move play out. This can lead to an overly itchy trigger finger on the next trade. Candlestick analysis on its own is mostly useless: it must be combined with support and resistance, trend, time of day or other factors. ALL of these other factors are in themselves more powerful than candlesticks, yet the candlesticks are the number one factor traders are taught to focus on.
Fundamental and quantitative factors are usually ignored. Trend trading is the most easy and natural way for new traders to profit in the retail Forex market. However, there are a lot of misconceptions about how to trend trade Forex, which usually come from the misapplication of methods that are more suitable to trading stocks or commodities. Forex pairs tend to move much less than stocks and commodities, therefore applying traditional trend trading breakout strategies indiscriminately will almost certainly lead to losses over time. Swing traders are looking to exit from winning trades from one to a few days after entry. It is very problematic to apply this time frame to trend trading, as in Forex trend trading profits are statistically derived from the big winners which are allowed to run.