Trade On Forex

1. Pay less in spreads

All people know that most brokers do not fee commission per trade but what they fee is a spread. It's a difference in the middle of buy and sell prices. Those who custom scalping know that to make a good behalf you need to execute a high amount of trades. So if a trader works with a currency pair that has 3 pips spread and he executes 20 trades then he is already short of 60 pips. The behalf target in scalping is nearby 10 pips. On the other hand swing trading based on a daily chart requires executing very few trades with behalf target commonly being over 100 pips.

2. Low level of noise

If you trade short term then you have to use lower timeframe charts. The lower the timeframe the higher the noise level. I met some scalpers who use 1-minute charts. On charts like that all things looks like buried in noise. The longer-term techniques like swing trading want 4 hour or even daily charts. It's much easier to spot the right price pattern on those charts than on 1-minute chart.

3. Sufficient emotional control

When you have to monitor continuously your trade it drains out your emotional vigor very quickly. I think you are customary with the emotional roller coaster of observing price to fluctuate for and against your trading position. With the swing trades you need to monitor you trade for very little amount of time. Many swing trading techniques are based on analyzing the charts at the end of the day. Even though emotions are still complicated it's not like with scalping. The intensity is much lower.

4. Being able to trade part time

Many people come to trading to make quick money on the side. They may not comprehend that it will want exertion and hard work. But the best selection for them is to go with swing trading. As I mentioned before it requires very little of your time to monitor your trades. However it does want large amount of time to study the store and educate yourself on trading.

Swing trading requires patience though. It may want even more patience than other trading techniques. One trade may last a few days for some swing trading systems. Some days you may even have no trades. But the benefits of developing patience and discipline will be spectacular, for your trading outcome.