Swing trading is trading that takes advantage of price swings in the market. It’s one of the most popular types of trading and can be used to make short-term or long-term profits.
You need to master a few things before starting swing trading in Australia. This article will outline what swing trading is, how you get started, and some tips for success.
How to Swing Trade in Australia?
To begin swing trading, you’ll first need to open up an account on a cryptocurrency exchange. There are plenty of choices, but not all exchanges allow swing trading on their platform. Binance is one example of an excellent choice for Australian traders who want to get started with swing trading. You can deposit AUD in to Binance using your Commonwealth Bank credit or debit card, making getting started extremely easy. Coinbase would be another good option for Australians looking for more choices in cryptocurrencies they can trade with.
Once you’ve chosen an exchange and purchased some Bitcoin, Ethereum, Litecoin (the most popular assets for swing trading), or forex, it’s time to get started.
Important note: you’ll need at least 0.5 Bitcoin, 1 Ethereum, or 4 Litecoin in your account before you can start swing trading. That’s because the exchanges only allow margin trading (which is borrowing money from them) if you have more than $1 of their currency in your wallet.
It’s also worth noting that some risks are associated with swing trading cryptocurrencies on an exchange like Binance. For example, if the price of the cryptocurrency changes while your order is still open, there’s a chance they will execute it at a less favourable rate than expected. This risk isn’t necessarily huge – once your trade has been completed, Binance stops allowing new orders on that asset until it falls back within the desired price range – but it’s worth being aware of.
How to Find Good Swing Trading Opportunities
The best way to find good swing trading opportunities is by using technical analysis. This type of analysis looks at past price data to try and identify patterns that you can use to predict future price movements.
Tips for Successful Swing Trading
Now that you know what swing trading is and how to get started, here are a few tips for becoming a successful trader:
- Always do your research before selecting a market in which to trade.
- When you enter a position (this is an order that will automatically close your trade if the price drops below a certain point).
- Know how margin trading works on your selected exchange before starting swing trading.
- Entering long positions (betting that prices will rise) can be just as rewarding as entering short positions (betting that prices will fall).
- Don’t be afraid to fail. Trading with real money is extremely risky, so you need to be prepared for the possibility of losing your money. If you lose some trades at first, don’t let that discourage you.
- Once you’ve chosen your market and made your trade, hold on until prices go in the direction you predicted.
- Margin trading will allow you to make a profit even if the price of a cryptocurrency drops below where it was when you bought it (if it’s a short position).
- Always use a stop-loss when you enter into a margin trade. It protects you from losing your entire investment if the cryptocurrency price suddenly skyrockets.
- Take profits when you reach your target. Don’t wait for prices to go back to where they were when you started trading – if you do, there’s a good chance you’ll miss out on some profits.
- Don’t overtrade. It’s important to remember that more trades (especially if you trade frequently) don’t necessarily mean more profits.
- Remember that successful swing trading takes practice. Don’t worry if things don’t work out initially – keep trying and learning from your mistakes so you get better with each new attempt.
Swing trading can be excellent for investors to take some profits in a relatively short amount of time. However, you must understand the risks involved and use technical analysis correctly before starting. Now, who said you couldn’t learn to trade from the forex websites.