Swing trading is something investors refer to when they describe a trading activity that can be said to be in the middle of trend following and day trading. What they do is that they hold on to a certain commodity for period of time, which sometimes can be anywhere from a few days to a few weeks, and trade the commodity based upon the swing values and how they change within that time. Investors actually go towards swing trading when they are placed in a market that seems to have know direction or is not going anywhere at all.

It seems that this market situation is defined by its ‘yo yo’ feature, which means that sometimes the indices rise for a period of some days and sometimes it goes down. Based on these value volatilities, traders take advantage of the sharp upswing to make small amounts of money (depending on how much is invested of course). One thing you need to know about swing trading is that there are problems attached to it and one of this is the challenge of correctly and succinctly identifying and knowing what kind of market you are dealing with. You need to have some intimate product and commodity knowledge, sometimes even more than regular investors to be able to capitalise on short term movements of the market.

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Forex comes from the contraction of “Foreign Exchange” which means market in french. Forex, as its name suggests, is a market that is dedicated solely to the different currencies, it allows investors to buy or sell the currency of their choice in a large inter-bank market, fully globalized. It was created in 1971.

Foreign Exchange Market to several peculiarities compared to conventional equity markets that we know well, the first of them is that it is open 24 hours on 24, from Sunday evening to Friday evening. Indeed, as operators around the world involved in this market it should be permanently open to accommodate different time zones. It is closed on weekends.

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