Yes. The key is you can afford the risk. As long as that statement stays true, 5% is a reasonable amount for just about any type of trading you want to do.

But if reality doesn't track your hypothetical results, don't make the mistake of putting another 5% into it.

If a person has no knowldge and skills about Forex then it will be very difficult to trade in Forex. But if you use the right software you can make very good profit. The best software is called "autobinary signal". If you aren't a big expert this software is the only way to earn good money in Forex.

I, too, am unsure of your meaning of swing trading.

But, if you have $100k and want to "gamble" with 5k, fine. But, be prepared for "some bad luck".

Hypothetical investing always seems to have better returns than actual investing.

5% of your assets is nothing. What you should be more concerned about is whether you get taken in by the thrill, and decide to push out more than 5%.

Define "swing trading."

I know people say to avoid day trading and swing trading because of high risk. I am familiar with some stocks, their historical prices and trends. I have tested multiple times with hypothetical money with my skills in trading and if it was real I would have made some pretty good returns for the past couple of years. However I do not see it as an investment option and is more of a gamble which is why I know it is not practical to use all my money. Is 5% of my liquid assets reasonable to play around with. I am 23 by the way and with my age many investors told me I can afford the risk.