Swing Trading vs Day trading – What offers what?

Swing-trading-VS-Day-trading
1.
4.8 stars from 530 ratings

Broker Verified

Blackstone Futures is a truly local FSCA regulated broker with offices in Rosebank Johannesburg. Enjoy same-day withdrawals.
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
2.
4.7 stars from 503 ratings

Broker Verified

Markets.com providers a unique trading experience for forex and stock traders alike. They are a global multi-regulated CFD broker regulated in SA.
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
3.
4.6 stars from 301 ratings

Broker Verified

With 107 currency pairs, Exness provides leading coverage. Exness has a maximum leverage of 1:2000 and a low minimum deposit.
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.

Swing and day trading are two similar yet different trading strategies based on their time frames and profitability. Both these trading forms operate to gain profit in short-term stock investments instead of long-term ones. However, both call for different techniques and skills.

Therefore, most in-service traders still get confused between the two when it comes to choosing anyone. So, let’s delve deeper into what swing trading and day trading hold in themselves and examine which trading type is suitable for your niche and preference.

Swing trading

As the name refers, swing trading tracks and manages the turns in the stock market, fluctuations in currency values, or assets to capture weekly market trends. It takes some days or a week to generate a chart and operate.

Thus, it makes it impossible for the trader to access swing trading as a full-time job. However, it may be a plus point for the traders who don’t want to sit on their computers all day long.

Moreover, the generated profit or benefit in swing trading also depends on the volatility of the market prices irrespective of its long time frame. Therefore, it calls for patience and comprehensive knowledge about the investment capitals to begin swing trading.

Day trading

Unlike swing trading, day trading offers several open and close short-term investment positions in a day. So, the market liquidity that follows short-term investments is an ideal situation for the day traders.

Unlike swing trading, day traders have to clinch to their devices to track the market trends and profit. Mostly, day traders prefer starting and closing market times to get the most of the situation when the currency value is peak.

Day traders prefer the forex market for day trading as it involves currencies like EUR/USD that show more liquidity because of the higher trading frequencies.

What makes both different from each other?

Stock market or forex trading graph with map world representing the global network line wire frame data business concept banner

Broker
Rating
Regulated
Bonus
Min. Deposit
Max. Leverage
1.
Blackstone Futures Broker Review
4.8 stars from 530 ratings

Broker Verified

FSCA

up to 30%

USD 100

1:400

Review Visit Site Visit Site
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
2.
Markets.com Broker Review
4.7 stars from 503 ratings

Broker Verified

FCA, ASIC, CySEC, FSCA, BVIFSC

up to 50%

USD 100

1:300

Review Visit Site Visit Site
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
3.
Exness Broker Review
4.6 stars from 301 ratings

Broker Verified

SFSA, FSC (BVI), CBCS, FSCA, FSC (Mauritius)

up to 10%

USD 10

1:2000

Review Visit Site Visit Site
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
4.
Tickmill Broker Review
4.5 stars from 333 ratings

Broker Verified

CySEC, FCA, FSA, FSCA, LFSA

N/A

USD 100

1:500

Review Visit Site Visit Site
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.

Swing Trading

Day Trading

It offers several trading opportunities in a time of days or weeks.  It provides multiple trading options in a single day.
It is more flexible as it doesn’t require more screen time and allows you to hold positions for weeks. It may become more stressful due to abrupt trading decisions as it only allows holding assets for a few minutes or few hours.
You can gain more profits from only a single trade without worrying more about volatility.

 

¬†Profit generation highly depends on the market’s volatility or liquidity.
Swing trading is more prone to risk because it allows holding positions for longer. Day trading is less risky than swing trading. Yet, it calls for more diligence and time.

Which type of trading is the best for you?

The minimum requirement for swing trading vs. day trading

The minimum equity requirement for day trading is nearly $25,000 that the trader has to pay before starting with any investment activity in a day. In swing trading, this amount varies between $5000 to $10,000 on average.

If the trader can’t deposit this minimum amount, he won’t be eligible to start day trading or swing trading until he deposits again to meet the required level and keep it maintained.

Profit gain

For smaller accounts, day trading is more profitable as compared to swing trading. However, it doesn’t make the day trader richer than a swing trader; trading doesn’t make you rich after all.

It is just a fun game of strategy and calculated investments. Day trading offers more opportunities than swing trading. Yet, swing traders can earn more from a single swing trade than 2-day trade activities.

So, the profit generation depends on the trader’s skills and expertise and, above all, the strategy of tracking peak points to maximise profit.

Security

In terms of security, swing trading vs. day trading is almost similar, yet there is less chance of losing a greater amount in day trading in contrast to swing trading.

Day traders have to ready themselves for the possible large losses while taking the risk for the bigger gains.

Again, this game of losing or winning depends on your knowledge about swing trading and day trading.

Time frame

Swing trading requires more time and lasts for longer than day trading that follows a time frame of 15 minutes to hardly lasting for an hour.

Day trading can be done throughout the day as per the market’s opening and closing timings for almost five days a week. Swing trading requires a few days or weeks to generate a chart or market trend.

Day trading vs. swing trading- which is a preference?

Both swing and day trading methods offer equal advantages and disadvantages. However, if you want to avoid greater risk, a careful trading strategy is necessary. Trading selection depends on an individual’s skills, knowledge, and desired time frame for trading.

By summing up the above examination of swing trading vs. day trading, we observe that day trading is more time-consuming and requires more knowledge and diligence to maximise profit, as compared to swing trading.

The day trader may also lose all his gains on a single loose. It is that stressful. However, day trading can be done as a full-time job as it offers multiple trading options within a day, allowing you to profit with your efforts as much as you can.

However, in terms of risk, swing trading is riskier than day trading. So, it depends on you, whether you want to do trading as a full-time or part-time career and how much time you can spend learning and gaining profit in trading.

Bottom line

Both trading methods offer different time frames, require different technical strategies, and above all, offer different trading options. This makes it usually difficult for the traders to choose anyone that suits their style. There is no one best trading strategy. It depends on the trader’s skills, personality, and preference of trading style.

Relevant Posts

Leave a Reply

Markets.com Logo

Get up to $1,000 Bonus

Markets.com Logo

Get up to $1,000 Bonus

South Africa's Top 4 Brokers

Minimum
Deposit

USD100

Welcome Bonus

30%

Minimum
Deposit

USD100

Welcome Bonus

50%

Minimum
Deposit

USD10

Welcome Bonus

10%

Minimum
Deposit

USD100

Welcome Bonus

N/A

South Africa's Top 4 Brokers

Blackstone Futures Logo

Minimum Deposit

USD100

Max. Leverage

1:400

Welcome Bonus

up to 30%

Markets.com Logo

Minimum Deposit

USD100

Max. Leverage

1:300

Welcome Bonus

up to 50%

Exness Logo

Minimum Deposit

USD10

Max. Leverage

1:2000

Welcome Bonus

up to 10%

Tickmill Logo

Minimum Deposit

USD100

Max. Leverage

1:500

Welcome Bonus

N/A