What is a Swing Trader?
Swing Traders seek to profit from price swings taking place over the course of several days or between 1-2 weeks. Due to this shorter time frame, Swing trading tends to inherently encourage a greater focus on technical analysis rather than macroeconomics or geopolitical factors which might influence forex rates. Swing Traders have an acute awareness of the relevant fundamental themes around forex however, which is often critical to avoiding disruptive volatility triggered by event risk.
Why did I get this result?
Based on your answers, you seem to be a person who is willing to wait a short amount of time to find the best deal or the greatest successes in your trades. You also have an affinity for basing your decisions on up-to-date technical analysis and timing your actions carefully to ensure good results.
Within your aptitude for good timing however is the patience to wait for the optimum time to make your move. You are also happy to learn from your mistakes and let small loses go in order to focus on slightly larger wins.
Be careful though. Your answers suggest that despite your patience, you are always looking for results and are eager for a win, even at the cost of some minor risk. While this is admirable, be sure not to let it cloud your judgement as a Swing Trader.
Finally, you seem to be able to commit a good amount of time to forex trading, but not every minute of every day. This is just as well, because within Swing trading you will need to check your trades regularly.
Which assets may be compatible with this trading style?
Am I destined to be a Swing Trader forever?
As you grow and learn within the world of forex trading, your style and approach to trading will develop as well. The Swing Trader style matches your current mindset and personality, but in a few years, you might have changed your trading style a little. Take this test again 12 months into your forex trading career and see if you have remained as Swing Trader, or if you’ve become a Scalper, a Position Trader, an Algorithmic Trader or an Event-Driven Trader.
A REMEMBER, these results were based on a short personality test. Forex trading in your suggested style will not guarantee success.
What is my next step?
If you’re just starting out in your career of forex trading, then DailyFX.com and our years of experience can help put you on the right path. Now you know what type of trading style suits you, why not start putting your strategy into practice? Open a demo account with IG, the provider of DailyFX, today.
Join one of our regular webinars to get insights into the world of forex trading and learn how to develop your own trading strategy. These sessions are run by experienced traders who will discuss emerging opportunities and the latest proven strategies for budding Swing Traders such as yourself.
You can also download our free e-book, Tips of a Successful Trader, to learn from real forex traders about the common pitfalls and how to avoid them.