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Is technical analysis really necessary for someone who is interested in swing trading? The beauty of swing trading is that it grants you to get in the market long enough to make a profit but get out soon enough before you suffer any huge draw downs due to unexpected market activity. Many new traders are unsure as to how much technical or fundamental analysis they should use. Can a swing trader be successful without any technical analysis? Likewise can they be successful with no fundamental analysis? If you want to be the ideal that you can be at trading then it is strongly advised that you mix a tiny of both into your swing trading so you can get the ideal of both worlds. Both technical and fundamental analysis play a major role in how swing traders make decisions and manage their trades regardless of the market they purchase and sell in.

Fundamental plays an important role in swing trading because the performance or expected future performance of a country’s economy can have a major impact on the value of its currency. Perhaps the biggest impact comes from a country’s interest rate. Interest rates can have a major impact on the value of a currency and this is one thing that professional swing traders constantly keep an eye on. When all things are equal, if a country’s interest rate is higher than another, the value of its currency should appreciate. The higher interest rate attracts foreign investment who must purchase the currency to enjoy the high interest rate level. This causes demand for the currency and hence explains why swing traders like to keep an eye on interest rate levels. They can greatly affect the value of a currency in both the short term and long term.

Technical analysis is also something that should not be neglected. Technical analysis is all about the analysis of charts and what they are telling us. This includes a wide varying number of things and can be as easy as examining the trend to using or plotting information on your chart via an indicator. Some traders might also implement the use of chart formations in their technical analysis. Technical analysis will most likely play a larger role than fundamental in your swing trading, but it should not absolutely dominant any market analysis you do before opening and closing trades.

Neither fundamental nor technical analysis should be the dominant player in any swing traders trades. Each style of analysis offers a swing trader critical information about the market and can greatly improve their chances of being a successful trader in the long run. Fundamental analysis gives traders a huge picture of market and the most important thing to keep an eye on is the level of current and future interest rates. These rates can greatly affect the value of a currency and will help give you an intent of where the market might be going. Technical analysis is necessary to refer the trend and place trades. Both styles of analysis work hand in hand with apiece offering a one-of-a-kind appearance and information about the market.

Everyone who is familiar with the finance world already knows so much about what Forex is and how it Works. The question, the answer of which is not clear for everybody, is what the ideal strategy is in Forex to acquire money without losing it. Having spent two years on Foreign Exchange Market and tried various strategies, I found the ideal strategy for those who want to make the ideal profit at once. If you have enough capital and you are willing to invest it in a way which will bring more money, you can follow the following steps.

1- Register with a Forex Company
If you make a research on the internet, you can see many forex companies, apiece of which claims that they are the ideal forex company. Just don’t jump on the first firm you found. Make detailed searches, read the reviews about the companies, take their features into consideration and after that register with the company that you think as the ideal and the most reliable.

2- Define Your Parity
Don’t try to be an expert on each parity because this is really difficult for even the economists. For my strategy the ideal parity is GBP/JPY. We will work on it now that you are voluntary to follow my technique. 

During the years that I was interested in forex, I saw that GBP/JPY parity moves up or down for at least 700 pips monthly which is such a large jump that many signal companies guarantee that amount of pips to you in response to a considerable payment. Yes at least 700 pips. It sometimes goes up to 1000 or even 1800 pips. This happens 2 or 3 times a year but I guarantee a 700 pip-change to you each month.

3- Wait for the Ideal Moment
The ideal moment to open a position in forex is to move for the top or bottom point of a parity. So you have to move for these points if you want to catch the 700 pip-jump. Follow the parity each day and try to find the starting point of the huge jump. H1 screen is the ideal to define this point as it shows the middle and long term activity of the parity.

4- How to Open Position
The ideal method for my strategy is to use the 4 percent of your money with a 1:200 leverage rate. Let’s adopt that you have got 5000$ in your account, you can open a position with a 0.20 portion. So you spent 200$ (in GBP/JPY this amount is 300$). So you have got 4700$ left. Do know what it means? GBP/JPY parity have to move up or down for 2300 pips which is nearly impossible as long as the British or Nihon Central Banks bankrupts. So, the 700 pip-jump will bring you 1400$ monthly without losing one cent. If you find this too risky, you can use 2 percent of your money. In this case you ever never lose your money because it requires 4800 pips but your profit becomes 700$ at least.

This strategy was and has been tried and found successful. While trying the same strategy, you should be calm and relaxed and never get nervous because what makes the most of forex losers lose money is mostly getting nervous rather than opening wrong positions.