There are advantages and risks to both swing and day trading. You can determine which to practice based on the current market.

Swing Trading v. Day Trading

Swing:
-Potential to make more money than with day trading
-Going across multiple days (e.g. a 100 day period)
-You do have the risk of holding positions overnight; you also have the risk of news, politics, etc
-Gives you more room to grow than with day trading
-Requires more research about the company

Day:
-Market opens at 9:30am
-You purchase stock at 10:20am
-You have bought and sold stock and now own nothing at 3:00pm
-You are trading on the day’s gain (or losses)
-Everything is done withing one day
-Advantages: no risk behind holding positions overnight, news events (i.e. earthquake), etc
-Usually stocks will not jump very high in one day unless they are higher priced shares

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33 COMMENTS

  5. I would be very careful about swing trading in a bear market. Letting stocks ride is a disastrous strategy when stocks are heading downward. I learned that the hard way 🙁

  9. It's SEEMing like in THIS "Administration" Day Trading is the ONly thing that'll make any sense any time soon. Every DAY I wake up the damn stocks all over the charts I look at, which I admit come from my computer and the 5 major markets; i.e, the ones I'm familiar with; are always solidly red. Meaning down all over the place; every DAY. I don't know for sure though bc I have nothing else to go on; I didn't have any money when Obama was president so I don't know if NASDAQ & NYSE were red all the time. The only thing I know for sure is THIS "president" never shut up calling Obama incompetent with economics but he's not looking much BETTER. His damn advisors don't make any sense to me either.
    It can't be that GOOD that NYSE & NASDAQ have now been red almost as long as N. Korea. It's hardly EVER green. Why? Why are the two major stocks red/green/red/green/red? Is that how it's ALways been. Like I've said: I have no experience with it until this year.

  12. Hi there, I'm looking into trying this trading lifestyle but I'm not sure if it's for me. I work full time, 3-4 days a week (12 hours each day, not consecutive days). If yes, which is better for me, Day Trading or Swing Trading? Thank you.

  20. thanks for explanation..which is swing trader is over more days and day trade is in a day or not even a day. I study countless videos, interviews on swing trading and experts like yourself, always say how the big money is made in swing trading. From my experience, the markets are very difficult to trade. For example, in an uptrend..as swing trader or trend trader, we expect it to go up, so we buy. But then there could be a pullback, you get stopped out, ok you increase your stop. But then there is more risk..and when it goes up, we may not know where to place the stop, maybe too close, get stopped out..to far, it pulls back or even the stock reverses..it is soo hard to time it. Not saying that people haven't made money trading the markets, but it is like gambling. So what am saying, when trading we predict, but is like based on nothing, not fundamentals because trading is usually in a day or over a number of days..so mostly fundamentals won't matter that much. Of course there are probably many ways to trade the markets, what I am saying is swing trading as in trend trading has never worked for me. I can only guess probably day trading is in a way similar in the way it is based on nothing usually. Uptrend, you buy, but based on what. yeah it's going up. Doesn't mean it can't pullback or reverse..gambling..lol Just my opinion and experience..

  29. There are other differences that you didn't mention. Day trading requires a minimum balance, a special day trading account and a margin account (or at least it did, years ago). Swing trading has no such requirements. If you try to day trade in a regular (non-margin) account, your account will be flagged or suspended. If you hold a position overnight in a day trading account, you may also get flagged. Also, the tax rates are higher for short term "trades" than they are for long term "investments" (or at least they used to be).

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