Are you tired of feeling chained to your screen, trying to keep up with the fast pace of day trading only to end up missing opportunities or burning out? For many Kenyans looking to profit from the stock or crypto markets, the challenge is finding a trading style that fits their busy lives without demanding constant attention. That’s where swing trading comes in, a flexible strategy that allows you to hold positions for several days or even weeks so you can capture larger price moves without watching the markets all day. The biggest advantage? Swing trading in kenya lets you trade smartly, giving you time to analyse trends and make informed decisions while balancing your job, studies, or business.
What is swing trading
Swing trading is a trading strategy that a trader aims at capturing short- to medium-term price movement in a market. Unlike day trading, where a trade is closed within a day, swing trading positions are held within a few days or even several weeks. The aim is to buy low and sell high over these swings in price.
Swing trading utilizes fundamental and technical analysis to identify the direction of the market and the entry and exit points of the trade. Patience and calmness are required in swing trading because there is a likelihood of many intraday price fluctuations. Swing trading is less time-consuming than short-term trading strategies and can be applied to all digital assets. But traders should consider diversification and risk management to avoid huge risks.
Swing trading vs day trading
Swing trading and day trading are two of the most popular trading styles in Kenya. They differ mainly in timeframes and strategies. Swing trading in Kenya focuses on capturing price moves over several days or weeks. Traders analyse charts and market trends to identify opportunities, holding positions overnight to benefit from medium-term swings in price. This approach offers flexibility, as traders don’t need to monitor the market constantly throughout the day. This helps traders to make good decisions on their trades.
Day trading, on the other hand, involves buying and selling financial assets within the same trading day, with no positions left open overnight. Day traders rely on quick decisions, technical indicators and short-term price movements to profit from small price changes, requiring full-time attention and fast execution. In day trading a trader is required to be active to note any price movement in the market for a profit.
Both styles have their pros and cons. Swing trading suits those with a day job or other commitments since it doesn’t demand continuous screen time and all-day presence, but it exposes traders to overnight market risks. Day trading can provide more trading opportunities and quicker returns, but it is time-consuming, stressful and exhausting and often requires advanced tools to trade and a solid risk management plan. The choice between the two depends on a trader’s goals, risk tolerance and available time.
Is Swing Trading Possible in Kenya?
Swing trading is possible in Kenya because there are markets where swing trading takes place. Swing trading in Kenya is a versatile strategy that can be used in several markets. It is important to note that some markets offer great swing trading opportunities. Examples of these markets include
1) Cryptocurrency swing trade
Although cryptocurrencies are a relatively new asset class, they have proven to be volatile. High volatility also means higher risk, but the volatile nature of cryptocurrency is an added advantage to swing traders. Because there are periods of strong trends and stagnant times, this creates opportunities for traders to place swing trades. Traders can trade in Binance KuCoin, OKX and Bybit.
2) Forex swing trades
Forex is the largest financial market in the world. Kenya has a thriving forex trading community due to mobile-friendly apps (like Exness) and accessible platforms. This is probably the best market for swing traders due to the abundance of swing trading opportunities in major and minor trading pairs of currency. Many traders prefer major currency pairs like EUR/USD and GBP/USD because of low spreads and swing trade strategies can be effectively applied to both minor and major pairs.
3) Swing trading stocks
Large-cap stocks, which are generally highly liquid and often exhibit clear trends swing between high and low prices, providing opportunities for swing trading in Kenya. Events such as company news as well as earnings also provide swing trading opportunities. Examples include companies like Infosys and Reliance Industries.
4) Swing trading commodities and indices
Commodities like gold, oil and agricultural products can offer swing trading opportunities due to their price fluctuations driven by supply, demand and global events. Stock market indices (like the S&P 500 and Nifty 50) can also be swing traded, either directly or through ETFs/CFDs, as they represent the broader market trends and often exhibit predictable swings. Such indices usually have well-known psychological price levels that investors watch keenly.
Popular swing trading platforms
Swing trading has become increasingly popular among Kenyan traders who want to profit from price movements without being glued to their screens all day. Unlike day traders who open and close trades within a single trading day, swing traders hold positions for several days or weeks, aiming to capture short- to medium-term trends in markets like forex, stocks, crypto and commodities.
For swing trading in Kenya, choosing the right platform is important. You need a platform that not only offers powerful charting tools and reliable trade execution but also supports local payment options like M-Pesa, has low fees and gives you access to the global markets you want to trade. Whether you’re a beginner or an experienced trader, these platforms can help you manage your swing trades more effectively and achieve your trading goals.
A) For stocks and ETFs
These include
i) Interactive Brokers (IBKR)—These platforms offer low commission, advanced charting and order types and wide global access. They are good for US, EU and Asian equities.
ii) TD Ameritrade (thinkorswim)—These provide powerful charting tools and free stock/ETF trades.
iii) Trading 212 / eToro (easier for beginners)—this platform offers fractional shares, zero commission and is user-friendly.
B) For forex
There are several platforms for forex swing trading in Kenya. They include
i) Exness—This platform is popular among forex traders in Kenya. It is MT4/MT5 compatible and has tight spreads.
ii) Pepperstone—it is popular because it offers fast executions. It is also known for its ability to spread low, and it is regulated.
iii) XM—This platform offers low deposits and may sometimes offer bonus offers to new traders.
C) For cryptocurrency
For traders who want to start swing trading in Kenya, they can put the following platforms into consideration.
i) Binance—Binance is a popular platform among cryptocurrency traders in Kenya, and it offers a wide range of coins, advanced charting and swing traders in Kenya can use spot or margin.
ii) KuCoin—This platform is also recommendable because of its low fee structure and offers a wide range of altcoin selections.
iii) OKX—good for swing traders in Kenya due to its ability to trade cryptocurrency pairs and its many order types.
Features to look for as a swing trader
- Advanced charting (trendlines, RSI, MACD, moving averages).
- Low overnight fees (swap fees).
- Stop-loss/take-profit order options.
- Mobile and desktop platform support.
Swing trading strategies
Swing trading strategies aim to capture short- to medium-term price moves across markets like stocks, forex, crypto, and commodities. These strategies rely on technical analysis tools such as chart patterns, indicators, and trendlines to spot profitable opportunities. For swing trading in Kenya, mastering these methods can open doors to consistent gains without needing to monitor markets every minute for traders. Below are proven core swing trading strategies that work across different asset classes.
i) Trend following
This strategy in swing trading in Kenya works with the current trend. This means that if the market prices are rising, you look for chances to buy and if the prices are falling, you look for chances to sell. To successfully benefit from it, traders use indicators such as moving averages (MA) to see the direction of the trend, from which they know how to make the decision on how to swing trade. In an uptrend they buy when the price dips (pulls back) to support (a low point before bouncing back). In a downtrend, traders sell when the price rallies (bounces up) to resistance (a high point before dropping again).
Tools:
- Moving Averages (20, 50, 100 day).
- ADX (Average Directional Index) to check if a trend is strong or weak.
ii) Breakout trading
In this strategy, traders buy when the price breaks out of a tight range or pattern. This happens when the price finally moves strongly above resistance or below support after moving sideways for a while. To fully benefit from this strategy, swing traders watch for periods when the price is stuck in a very small range. They then place a buy stop just above resistance or a sell stop just below support, confirming the move with volume.
Tools include:
- Bollinger Bands squeeze (bands tighten before a breakout).
- Chart patterns: triangles, flags, and pennants.
iii) Pullback (Retracement) Trading
Traders wait for the price to temporarily move against the trend, then enter in the direction of the trend after the pullback ends. They use Fibonacci retracement levels (common levels: 38.2%, 50% and 61.8%) to predict where the pullback might stop, look for various candlesticks in these levels and then enter when the price starts moving back with the trend.
Tools for pullback trading are
- Fibonacci retracement tool.
- Candlestick patterns.
Risks in swing trading in Kenya
Although swing trading presents itself with numerous opportunities for traders, it also has some risks that come with it. These risks include
i) Market volatility
Swing trading in Kenya relies on price movement, but sudden news and political instability, both local and global, can cause unexpected price movements in the market. Traders can go in the wrong direction, causing a loss.
ii) Currency risk
Most Kenyan swing traders use platforms that rely on USD, GBP or EUR and the KES/USD exchange rate fluctuations can affect profits when converting gains. This means that if you trade in a platform that uses USD or other foreign currencies, changes in the KES exchange rate can affect your profits when converting money back to Kenyan shillings. You might have made a profit in USD but lost value when converting to KES if the shilling value weakens.
iii) Brokerage & Platform Risks
Some of the brokers used by Kenyan swing traders don’t have the right requirements and are not regulated by the Kenyan authorities, that is, the CMA. This exposes most Kenyan traders to fraud and platform downtime or fund withdrawal issues.
iv) liquidity risk
For traders dealing with Kenyan stocks (NSE), some stocks have low liquidity. This can make it hard to exit positions at favorable prices.
v) Psychological & Emotional Risk
Some swing traders make poor decisions and trade without carefully monitoring the market, often driven by fear of missing out (FOMO) or panic selling. This later leads to significant losses.
vi) Regulations and tax risks
The Kenyan government can drastically change tax laws like the capital gains tax on shares and end up owing more taxes than you expected. This risk can cause a great loss for swing trading in Kenya.
Risk management in sawing trading in kenya
There are several risk management techniques that Kenyan traders can apply to avoid some of these risks. They include
a) Use stop-loss orders
As a trader, always define how much you are willing to lose in a trade. Don’t risk more than you can afford to lose. A common rule is risking 1-2% of your account balance per trade. It helps because it limits losses without you having to watch the market all the time.
b) Position sizing
Position sizing is the process of determining how much capital to allocate to a single trade based on your risk tolerance and account size. Avoid going “all-in” on a single swing trade. Spread risk across multiple trades if your capital allows you to do so. Even if you lose a trade, you have enough left to continue trading.
c) Choose regulated brokers
Always choose a broker who is well-known and regulated by the CMA in Kenya, the FCA in the UK, and ASIC in Australia. Always verify a broker’s license on the regulator’s official website before opening an account. This reduces fraud and withdrawal risks.
d) Currency hedging
Currency hedging is a strategy used to protect against losses from currency exchange rate fluctuations. It involves using financial instruments like forward contracts, options, or futures to lock in exchange rates.Consider keeping some savings or reserving some of your earnings if you are exposed to USD fluctuations.
e) Stick to trading plan
A trading plan usually defines your entry, exit and stop-loss levels. Ensure that you document your trades to monitor and evaluate your discipline and performance. Keeps emotions out of trading and ensures discipline for a positive result.
f) Diversify instruments
As a swing trader, consider trading different class assets. That is a mix of NSE stocks, forex, or commodities. This approach helps protect your portfolio from heavy losses if one market performs poorly. A well-diversified strategy balances potential returns and lowers overall volatility.
Advantages of swing trading in Kenya
Swing trading has become a popular strategy among Kenyan traders seeking to benefit from market price swings. Here are some key advantages of swing trading in Kenya.
i) Flexibility for part-time trader
Unlike day trading, swing trading in Kenya does not require you to monitor charts all day long. This makes it best suited for teachers, students, professionals and business owners who can analyse the market in their free time, on weekends or in the evening.
ii) High potential for good returns
Since swing traders aim to catch short- to medium-term price movements over a few days to weeks, they can benefit from multiple opportunities within a month. traders can benefit from strong trends and by using a proper analysis and risk management plans , this strategy can deliver solid profits while minimizing overtrading.
iii) Less stressful than day trading
In swing trading , a trader doesn’t have to make decisions within seconds or minutes. Instead, you have ample time to plan and strategize your trades. With the use of higher time frames like the 4-hour or daily charts, traders can calmly plan their entries and exits without feeling rushed. This approach promotes a healthier work-life balance and helps reduce emotional pressure.
iv) Lower transaction cost compared to day trading
Fewer trades mean you pay less in fees and commissions, which is important on platforms like Binance, KuCoin or local brokers. Swing traders hold positions for days or even weeks, reducing the cumulative cost of trading. This makes swing trading in Kenya more cost-efficient, especially for traders with smaller accounts.
v) Educational resources are widely available
There are many free and paid resources and courses of learning like YouTube, Udemy and Telegram, that are tailored for swing traders in Kenya. This makes learning swing trading techniques much easier.
vi) Traders can trade multiple markets
For swing traders in Kenya, you can trade crypto, forex, stock and even several commodities, all depending on your broker. By trading multiple markets, swing traders can spread risk and take advantage of more trading opportunities.
Cons of swing trading in Kenya
Swing trading offers exciting opportunities, but it’s not without challenges. These challenges include.
i) Market volatility risk
The Kenyan markets, especially forex and crypto, can be highly volatile. Unexpected news, CBK decisions or global events can cause sudden price movements. Managing this risk requires careful position sizing, stop-loss orders and being well informed about key market events.
ii) Emotional pressure
Watching the market move in the opposite direction can be stressful and this may lead to poor decision-making or panic selling. Staying disciplined and following your trading plan can help traders to overcome this risk.
iii) Cost of trading tools
To swing trade effectively, you may need charting tools (e.g., TradingView Pro) or VPS services if you use automated strategies. Many brokers offer free platforms, but advanced tools may come with monthly fees and this becomes a buden to some traders especially beginners.
iv) Unregulated brokers
Some traders fall victim to fraud and withdrawal risks when they choose unregulated brokers. These brokers often make unrealistic promises, such as guaranteed profits or zero risk, that seem too good to be true. Unfortunately, many traders are drawn in by these offers, only to realize later that they have been scammed, with their funds either locked or lost completely. This makes swing trading in Kenya hard especially for beginner.
v) Currency conversion and withdrawal issues
If you trade on foreign platforms, withdrawing funds (e.g., converting USD back to KES) can incur fees or delays, depending on the method used. Converting profits back to your currency can lead to extra costs due to exchange rate fluctuations and conversion fees.
vi) Requires patience and discipline
Sticking to a trading plan has proven to be a huge barrier to many beginners in swing trading in Kenya and may close positions too early or let losses run. Traders must resist the urge to react to minor price fluctuations in the market that come for a short period of time and stick to their trading plan.
FAQs
How much money is needed to start swing trading?
$200 to $1,000 (approximately KES 25,000 to KES 130,000). However, to better manage risk and have flexibility in trade setups, starting with $2,000 or more is recommended. The amount of money needed to start swing trading depends on your trading goals, the market you’re trading and the broker’s minimum deposit requirements.
Which trading is best for beginners?
Swing trading is often considered a better starting point compared to day trading. Swing trading allows new traders to take their time analyzing the market, make well-thought-out decisions and avoid the stress of rapid-fire trades that day trading demands.
Which forex pair is best for swing trading?
EUR/USD, GBP/USD and USD/JPY are considered the best due to their liquidity, clear trends, and manageable volatility. These pairs provide good opportunities for medium-term trades with reliable technical patterns.
Conclusion
Swing trading in Kenya offers a practical and flexible approach for traders who want to benefit from market price movements without the pressure of watching charts all day or requiring their presence. It is especially suitable for people balancing trading with other work, duties or studies, as positions are held for several days or weeks. However, successful swing trading requires patience, discipline and a good understanding of technical analysis. With proper risk management and by using reliable, regulated brokers, Kenyan traders can take advantage of the opportunities in both local and global markets while minimizing potential risks.