Swing trading is a trading method that takes advantage of medium-term fluctuations in the market in timeframes like H4 and D1 to make a profit. This is a trading method used by many traders.

Most traders who are new to the market will prefer day trading. But over time, a part of traders will want to switch to swing trading. Because of psychological pressure as well as less time to watch the market, while the profit level is very potential. However, swing trading requires patience, a good strategy and a higher level of risk tolerance than day trading.

Is swing trading profitable or not?

The answer is yes. But there are requirements that come with it for swing traders to make a profit. Because of the fact that there will be swing traders who make a profit, there will also be traders who do not make a profit.

In which for swing traders, patience is a prerequisite to be able to make a profit. Besides, traders need to have a good trading strategy, good capital management because the accepted risk level of swing traders will be higher than scalpers and day traders.

How much can swing traders earn?

A swing trader's hold time can range from at least a few days to a few weeks, possibly even months if market conditions still favor your strategy. And with such a time period, the potential for profit based on price movements is also greater for swing traders. So it can be said that the profit level of swing trading is quite attractive.

The income level of a swing trader more or less depends on the account size. For example, a swing trader with an account of $10,000.

If that swing trader wants to trade an uptrend on a currency pair on the D1 bracket by trading in a pullback towards the confluence support by 61.8 on the fibonacci combined with the previous trendline and bottom. At the same time, at this point, the background information also supports that strategy.

This swing trader entered an order with a stop loss equal to ½ of the ATR of the currency pair. If this trading idea is correct, then the trader only stops losing about 40 pips and the potential profit can be more than 100 pips even a few hundred pips.

Assuming this trader is willing to risk 4% (equivalent to $400) on this trade with a stop loss of 40 pips, the corresponding trade volume here would be 1 standard lot. And with the potential profit of more than 100 pips, it is clear that this trade can make more than 1000$. This is the profit level for a trading strategy that swing traders implement.

However, the trades they make are not the same, there will be losing trades and the number of trades they make is also quite small. However, the big advantage of swing traders is the RR ratio. With the implementation of strategies with high RR ratio will help them get potential profits in the long run.

Tips to become a successful swing trader
  • Find a high-quality trade setup with a high RR, follow a major trend, and more importantly, that setup works for you.
  • Be patient with the trades you make.
  • Manage transactions before news release.
  • Don't skip the basic news.
  • Use intermarket analysis.