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Most successful traders happen to be swing traders. Conversely, most unsuccessful traders are those who should hold trades longer, but because of their need to make money now or the fear of losing money, they exit trades too quickly.
There is a way to get over this hump, and while it's not always easy, it is necessary.
One of my biggest mistakes was believing that if I held a trade, I would be stopped very quickly. I also thought I was doing something wrong if I had a trade over the weekend or a day. I slowly learned I was trading people's fears.
Those beliefs were their experiences, and I realized they did not have to be mine.
Just Hold 1 Swing Trade
Imagine going to work, coming home to your family, and caring for your well-being. That gets exhausting very quickly.
Swing trading allows you to hold trades for hundreds of pips so you can work and enjoy time with your family. At first, it may seem not very easy to keep a trade but start with one trade. But, it's not as hard as you think. First, you have to develop the mind and tools of a swing trader.
How Long Should You Hold A Trade?
Timeframes, timeframes, and more timeframes!!!! I'm just playing.
Did you know that timeframes are like clocks? They tell you how often you should show up to enter a trade. But, before we get there, let's talk about distance.
If you want to hold trades longer, don’t block the price flow. Timeframes help you establish distance between your trades. I’ve found support and resistance traders block the flow of price the most.
They place their levels too close to one another, which prevents them from holding trades for a more significant amount of pips. The solution to avoid this is straightforward.
HOW TO PREVENT THIS???
First, establish the timeframe you can comfortably evaluate the trend. In this same timeframe, support the movement by plotting the structures you trade, rather this be trend lines, zones, or whatever you use,
As for my students and I, we use my estimation zones. Estimation zones are zones we use to estimate where we want to enter the trade(not exit the trade). Believe it or not, we only use one zone, unlike support and resistance, where traders plot more than 1 level or zone. But, again, this is because we like to keep things simple and focus on one entry at a time.
KEEP YOUR CHART CLEAN AND CLEAR
A clean chart is more straightforward to trade than a cluttered chart. Don’t add any unnecessary lines, indicators, or objects. As price flows, you want to be able to flow with it so you can scout the whole move.
DON’T FEAR PULLBACKS
Pullbacks are your true friends when the price is trending. I bet you've never heard that before. Seriously! Pullbacks matter because they are the key to your profitability. For example, if the price was in a downtrend, the deeper price pullbacks, the more money you can make when the price goes back down.
Keep this in mind the moment the price begins to pull back. A lot of fear is built in the pullback, but it can be a tremendous blessing once you shift your trading mindset.
HOW LONG SHOULD YOU HOLD THE TRADES?
Remember going to the park and playing on the swings hoping you could stay in the air as long as you could before the swing went back down? Think of swing trading as Such. You want to catch the complete swing move as price ebbs and flows back and forth until it reaches your take profit or stops loss.
Remember, being a swing trader is to hold the trade as long as the price flows in your direction. Most good swing trades take less than 1-2 weeks to give profit if there is no consolidation. However, some swing traders could take months. It depends on the momentum of the market and the fundamentals attached to the movement of the market.
What are the best timeframes to use?
So far, you’ve learned you can swing trade with a full-time job if you follow the trend by creating great distance between the structures you work.
The best timeframes to you can use to get the best swing trading results are the Weekly and Daily timeframes. This does not mean you’ll enter a trade each day or week on the same currency pair, but you will be able to hold the trade for more than hundreds of pips, even if it means keeping it for a few days or weeks.
You can learn how to do this using my 3 “Yes” step system called TMP. I will personally analyze the charts using this strategy and backtest them with you every Wednesday.
Isn’t it great you don’t have to figure it out on your own? Instead, you can learn it inside my Trade On Purpose Program and community for $197 a month. Did I also mention you’ll receive a trading plan and trade journal you can use to track your quarterly success in the market?
Ready to join? Click the button below, and leave a comment below if you have any questions.
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