Swing Trading vs. Day Trading | Difference and Profitability : Financial Matters


Swing Trading vs. Day Trading | Difference between Intraday Trading and Weekly Delivery Trading

Major difference between Swing trading and day trading is holding time period. These may seem like similar practices.

Day traders use to in and out from a trade in same day or within minutes or hours, this strategy is also called Intra-day trade. First, the time frames for holding a trade are different. Day traders are in and out of trades within minutes or hours. While swing traders hold their positions for overnight or two to five days.

Day traders’ generally don’t hold their positions overnight. As a result, they avoid the risk of gaps opening of Market due to some news announcements, data or result announce coming in after-market hours and causing a big move against them. Meanwhile, swing traders have to be wary that a stock could open significantly different from how it closed the day before. Sometimes swing traders incurred losses in their account due to these unpredictable news or result after-market hours and market opens in gap against them.

If we talk about “leverage”, day trade gets more exposure to execute their trade rather than a swing trader. They gets four times more buying power rather than a swing trader. Taking larger leveraged positions can increase percentage gains to offset costs. The problem is that no one is right all the time. And the make loss with the same percentage due to high leverage A bad trade, or string of bad trades, can blow up your account, where the loss to the portfolio is so great the chances of recovery are slim. For a swing trader, a string of losses or a big loss can still have a dramatic effect, but the lower leverage reduces the likelihood that the results wipe out your portfolio.

I personally recommend Swing trading. For more about Swing Trading Strategies, we have a separate post. Click here to read in detail.

We also provide free trails of Swing Trading, stay connected with this page during market hours, I give one free trading tips daily.

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