Title: What is day trading and swing trading?
1What is day trading and swing trading?
2(No Transcript)
3Difference Between Day Trading and Swing Trading
- Active Traders are basically who are always in
market even if its bullish or bearish. Due to
Active trader market and instrument get
liquidity. - Day Traders
- Swing Traders
- Both are seek profit from short term trade.
4Difference Between Day Trading and Swing Trading
- Day Traders
- As name suggests its involves in only Day
position. Basically they are scalpers
or technical analysis base trader. their
objective to make money in trade which will be sq
up before market close. Typically they make money
in small profits on numerous trades in a day with
capping losses of unprofitable trades. Day
Trading is full time profession. - Day Trading required lots of studies and unique
skill to become master of it. you can read more
about Day Trading here.
5Difference Between Day Trading and Swing Trading
- Pros
- No overnight Risk involved as position covered
or sq up in Day - Low Cost of Brokerage and other statutory
expenses. - Not required Fundaments knowledge or data for
studies - Expensive education not required
- Being your own boss Day trader mostly work
alone - With small capital take big position with help of
Leverage. ( Exposure )
6Difference Between Day Trading and Swing Trading
- Cons
- Risk of substantial losses
- Required full time attention
- No consistent pay
- High stress and risk of burnout
- Swing Trader is based on identifying moment in
stocks, commodities and currencies that take
place over a period of days. A swing trade may
take a few days to a few weeks to work out.
Unlike a day trader, a swing trader is not likely
to make trading a full-time career. Swing
Trading also called short time positional trader.
7Difference Between Day Trading and Swing Trading
- Pros
- Can do with full time job not required full time
in Market - Potential for significant profits
- Less stress as not required constant monitoring
- Benefit of long move Mostly profitable move
Swing trader can Captured - Expensive Technical Software not required for
monitoring - Cons
- Higher margin requirements
- Chances of higher risk due to open position over
night - Fundamental and macro factor also effects
8So , Day trading and Swing trading which is
better ?
- Day trading and swing trading both have
advantages and disadvantages. Neither Day trading
strategy is better than Swing Trading. traders
should choose the method which is best suits for
him base of his skills, preferences and
lifestyle. - Day trading is better suited for who wants to
full time profession of Stock trading and who are
individuals. - Swing Trading for those who want to earn
from market in short term but dont have time to
watch full day market moment.
9CONTACT US
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