Swing Trading VS. Day Trading: A Brief Comparison

Swing Trading VS. Day Trading: A Brief Comparison


The world of trading is not an easy world to enter without proper knowledge. There are different types of trading strategies that traders often opt for and a strategy that suits you may not suit someone else. Choosing a strategy depends on the time you are willing to dedicate, the money you’re willing to invest, and your level of commitment to it all. There are two strategies that people often compare to one another: swing trading and day trading. People often find themselves asking: is swing trading better than day trading? Or is day trading better than swing trading?

Let’s start by defining the two:

Day Trading 

This strategy involves trades that happen within the same day during trading hours. Traders open and close several positions throughout the day, making it a time-consuming strategy and a full-time job. It does, however, allow traders to benefit from price fluctuations in the market on any given day.

Swing Trading

Unlike day trading, swing trading is a part-time job in which trades span over days or weeks, rather than initiated and concluded on the same day. Through technical analysis, swing traders are able to identify trends and make trading decisions accordingly. They often look for securities that are expected to bring back high profits within a short period of time.


Is one better than the other?

There is no objective answer to such a question; it is a subjective matter that depends on what your goals are and how much time you are willing to put into your trades.

Day trading requires your full attention all day long, while swing trading requires less involvement from your end in terms of hours put. Having said that, due to the constant monitoring that comes with day trading, the risk is much lower. Add to that the fact that deals are closed before the day comes to an end, meaning there is no need to worry about how the market will open the next day. As for swing trading, the risk is higher because positions are left open overnight, meaning the market may open the next day in a way that harms your trade.

In terms of profits, swing traders make substantial profits, while day traders seek to make a maximum profit per trading day. This means that day traders have more potential to make a profit than swing traders but is that profit margin worth the risk? Swing traders, if experts in the field, can also make profits that exceed those of day traders as their trades last longer in the market.


Which strategy should you opt for?

No matter which strategy you opt for, trading comes with risks and it is best if you study all your risks prior to investing. It is recommended to put a strategy in place, lay out the pros and cons of that strategy, and see if you’re willing to take in the hits.

If you’re looking for some help in the world of trading or don’t know where to start, get in touch with Tradepedia today. We offer learning, coaching, and mentoring programs of different kinds. Through a series of thoughtfully designed step-by-step learning modules, methodologies, and tools, we will help you choose a strategy that sits well with your goals.