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Most of the day traders end up being swing traders. A swing trader may have started as a day trader. As the market kept moving in the desired direction, either they scaled out of a portion of the position, set a stop loss objective and kept the trade running.

A swing trader is also considered to be a mini position holder. Regardless of how a swing trader started, they need to focus on higher degree time frames and spend less time on 5-15 minutes time frames.

5-15 minute time frame charts are for the day traders, most of who are scalping. 5-15 minutes charts will generate too many short term signals if you are a swing trader holding a position for a few days. The most reasonable time frames for a swing trader are the 60 minutes (hourly), 240 minutes (4 hourly) and the daily charts.

Swing traders should give more attention to the daily, weekly and the monthly pivots as far as the pivot point trading is concerned. This information will help them to identify potential entry or exit targets but also help to be aware of the confluence of any support or resistance.

Keep this in mind that as a day trader, you are not so much concerned with long term macroeconomic conditions as you are with riding a momentum wave. The same is also true for a swing trader. As a swing trader you are simply looking to ride from a move and profit from it. This is your job.

Swing traders try to identify a potential trend and enter it at a time when most of the other traders have not yet identified it. You need to capture opportunities as they arise. In short term trading market conditions change! Forex markets are ideal for momentum trades. The forex market tends to trend well over the course of 3-10 days. This allows swing traders opportunity to capture larger price swings over a given period of time.

The biggest advantage that forex markets have over stock markets is that you have access to the forex market over the 24 hours period unlike the equity markets. Therefore, you can monitor your positions, place stops and take action to exit a trade at any time, day or night.

The fact that the forex market is a 24 hour market and because of the time frame involving several days in swing trading, swing trading is slightly more advantageous in forex markets. Due this continuous market action there are very few time that gaps occur in the currency pair prices, this makes forex markets more suitable for swing trading as compared to the equity markets.

In swing trading the profit potential is much higher if you enter a trade when the trend has just been formed. Carry a day trade through the overnight session if it moves sharply in your favor and you believe that a trend is in the making that can last several days. However, do not carry your losing position to the next session. Try not to hold a position over the weekend. Your entry was correct if the trade starts making money in your favor from the let go.

Never anticipate that a signal will happen. Wait until the close of the period to confirm the signal. When you enter a bona fide trading signal, never get fancy and try to get a better fill by placing limit orders. Go to the market before your competitors.