Equally, day trading is tougher because you are having to read the market hour by hour as well as interpreting new data every day, which can leave many exhausted after a couple of days. Although there are more opportunities to trade during the day, this again does not equal more profit.
As you can see, there is potential for both but you must note:
Neither is more profitable than the other.
This is a style of trading, profitability comes from the strategies and the person in control.
A poor swing trader will easily be outperformed by a good day trader and vice versa.
Don’t fall into the trap of being a certain trading style because it looked easy – it could be the wrong one for you!
Also, do not let a trading strategy dictate to you which style you should choose.
Now here is an idea:
Why not try both together?
Can you do this? Of course!
The key to being a successful trader is being able to adapt or die to any situation.
You can easily transition between the two trading styles with zero impacts on your trading ability.
You must understand that one isn’t superior to the other.
They are both meant and suited for differing conditions.
Day trading carries more potential for profits due to the frequency of the style of trade.
Whereas, swing trading tends to be more accurate as you are using larger timeframes, thus using more accumulated price action to make trading decisions.
Here’s the TL;DR on some of the main focus points around the topic:
Is day trading or swing trading more profitable?
Neither. They are both trade styles that you can use to maximise your trading days. However, each style is based on how much time you want to spend trading. Naturally, traders who day trade will have more opportunities to make a profit, but equally more opportunities to suffer a loss. Whereas swing traders have fewer opportunities in both profit and loss scenarios – but tend to have a higher chance of a trade working in their favour (due to using more data and higher timeframes, avoiding knee-jerk decisions).
Is swing trading considered day trading?
Swing trading can be done during the same time as day trading, this is done on a lower timeframe. As discussed, swing trading is more of a style of trade looking to capture trends that change (hence swing in price). This can happen many times a day naturally.
How much money do you need to be a swing trader?
£10,000 is a safe starting point if you want to trade seriously. This value is irrespective of your trading style, whether it’s day trading, swing trading, scalping, value investing… etc. etc.
Are swing traders successful?
Yes, like all trading styles – there is nothing limiting their success. It is the trader behind the analysis where the failure appears.
Summing It Up – Swing Trading vs Day Trading
It’s easy to get lost in the forex trading world with the different styles of trading, strategies, assets and lingo.
Neither trading styles are superior to each other, they just essentially indicate how you approach the markets.
If you are happy to be by the computer each day, following the prices and news releases – day trading may be for you.
On the other hand, if you want to be more hands-off and away from the computer, whilst still trading frequently – then swing trading may be your thing.
Either way, you still need a trading strategy that fits your style and how you want to trade.
Trading forex on margin carries a high level of risk and may not be suitable for all investors. You may lose all your capital. Losses can exceed deposits.
Past performance is not indicative of future results. The performance quoted maybe before charges which will have the effect of reducing illustrated performance.
All website content is published for educational informational purposes only.
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