Can you teach me Carry Trade and Swing Trade?

Can anyone teach me Carry Trade and Swing Trades?

From what I understand, Carry Trades are simply holding positions for a very long time for the purpose of "earning" Carry Interest. as an Example, Buy USDJPY, or buy GBPJPY.

As for Swing Trades, what I understand is that you simply hold the position until it swings in your favor. Like today, GBPUSD went down to 1.8700. While going down, buy and hope it will climb back up again?

You are correct in your assesment of a carry trade. however your definition of swing trade differs from my definition. what I belive to be a swing trade, is to hold position for a certain length of time example would be 2hrs. to overnight. lke scalping is holding position for minutes. position trading would be days, weeks and months. Hope this helps

Hello BK,

There are a lot of Swing trade definitions bouncing around. So, swing trading has become a general term.

My definition of swing trading is based on the roughly my observation that currencies tend to swing in a 300 pip range when in range market like we are now or as much as a 600 pip range when trending.

I swing trade based on technical analysis with my ear to the ground on the fundememntals/economic releases. While I don't take longer term positions based on fundemental speculation, I do protect my existing position profits prior to a substantial news release or if my position is still close to entry to handle a news release going against me.

I have stated this book many times, but if you want a good book on technical analysis I recommend The Master Swing Trader by Alan S. Farley. There are many like it, but I like that one.

In general I recommend that you teach yourself. Master technical analysis, put up the charts and just start applying what you have learned. I use 4hr charts. I find them to be the sweet spot between big picture and enough details. Once you get your feet wet and start having ideas of your own, share them whith us. I will gladly share my tech and opinions about your ideas.

Good luck !

I cannot teach you neither method of trading, but I can show you how Carry Trade looks like; make your own calculations. Here 0.4 lots eur/usd were sold on 07/25 more than month ago. The trade is still not closed:
<TABLE cellSpacing=1 cellPadding=3 border=0><TBODY><TR><TD colSpan=13>Open Trades:</TD></TR><TR align=middle bgColor=#c0c0c0><TD>Ticket</TD><TD noWrap>Open Time</TD><TD>Type</TD><TD>Lots</TD><TD>Item</TD><TD noWrap>Price</TD><TD>S / L</TD><TD>T / P</TD><TD noWrap> </TD><TD noWrap>Price</TD><TD>Commission</TD><TD>R/O Swap</TD><TD>Trade P/L</TD></TR><TR align=right><TD>66356</TD><TD noWrap> 2006.07.25 16:49</TD><TD>sell</TD><TD>0.40</TD><TD>eurusd</TD><TD>1.2657</TD><TD>1.2657</TD><TD>0.0000</TD><TD noWrap> </TD><TD>1.2582</TD><TD>0.00</TD><TD>131.25</TD><TD>300.00</TD><TR align=right><TD colSpan=10> </TD><TD>0.00</TD><TD>131.25</TD><TD>300.00</TD></TR><TR><TD colSpan=9> Good day!</TD><TD colSpan=2>Floating P/L:</TD><TD align=right colSpan=2>431.25</TD></TR><TR><TD style="FONT: 1pt arial" colSpan=13> </TD></TR></TBODY></TABLE>

if you need mentorship contact me at https://t.me/jamiehank

Swing trading--a subject near and dear to my heart!!

In order to do anything in life...one must first define well, what it is he wants to accomplish. In this case, what (exactly) is a swing point? While to some the answer might seem obvious, to others maybe not so much. My definition? Any price point where price stops moving in one direction and then moves definitively in the other. This works for both sides of the aisle...high and low price points. They are relatively simple to see in retrospect:
"Swing Trading" then is the idea of following the flow of market price movements from one point to another. Enter longs as price wants to rise and then exit longs and enter shorts (stop and reverse) as price wants to fall. It seems straight forward and uncomplicated.

However actually trading them in real time AS THE POINT IS FORMING...is an entirely different matter. There are many different "techniques", and "methods". Indicators and oscillators, etc, etc. Most of them will be doomed to failure, because they (mostly all) leave out the most important of finding and trading swing points. What causes swing points to form and why do they form at particular price points? How does one "know" or even suspect a swing point is forming until AFTER it has formed, and by this time it is too late to really take advantage of it.

The only way I have found to do this with any accuracy and with any consistency is to learning to read and understand what is actually causing price movements in the first place and then be able to detect (yes before hand) when price movements are going to stop moving in one direction and start moving in another. Thus maximizing the quantity of the price movement you are able to capture from one point to the next.

Carry trading is simply this: Placing funds in a currency where the central bank of that country is paying a higher rate of return than the currency you have, and leaving it there until the central bank changes its policy. From the retail perspective (which most of us here are), this is completely useless. To truly make this work, one must have large sums of cash that they are able to park in another country's currency for many years and not touch it. If you try to do this with a retail, broker, using a margin account the small amount of interest you will earn will be completely absorbed by the carry rate and charges your broker will place for the use of his margin. You may end up actually losing money or at least reducing any profit down to such a small amount that your money is better off placing it a savings account with a guaranteed rate, however small. If you want to trade...then trade...if you want to be a squirrel with your money the put it in something safer and guaranteed by a government you have confidence in. Most central bank that are raising interest rates are unstable...this is why they are raising rate, to encourage the investment of outside money...but they're economic system is on the verge of collapse...think Venezuela.