Swing trading is another trading strategy undertaken by the crypto trading community where every considerable amount of price fluctuation is taken advantage of. It is also one of the most challenging techniques because it requires both patience and the ability to quit, of the highest order, to yield the maximum gains. A swing trader must be a good reader of the market.
Swing trading is being followed by a large community of traders primarily because of the following important reasons.
i) Volatile crypto market:
Cryptocurrency market is known for high volatility. Hence, swing traders aim to make the utmost of it. Since swing traders, at the maximum, wait for a day or two to short their assets, they constantly look for the next big breakthrough in value. That’s where the volatility factor helps them.
ii) Immediate gains:
While a considerable group of crypto traders hold their assets for a long period of time, swing traders get to earn in a short span of time. This is one of the reasons why traders venture into swing trading.
iii) Anyone can venture into this trading:
Though scalp trading requires a level of experience, it can be performed by any trader as it involves minimal risk, capitalizing the low price variation.
A swing trader uses multiple technical analysis methods to pre-determine the price movements and take decisions accordingly.
The key aspect of swing trading is in finding the right asset that’s subject to heavy trading volume. In a couple of months, the value of an asset might not have been changed much but a swing trader is presented with multiple opportunities of market swings. Hence, one has to be truly active throughout the process.
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