Swing Trading vs. Day Trading

Last updated on June 12th, 2015



What exactly does Swing Trading mean.  Different people think of it in different ways.  This is one of the many definitions if you do a search.

Swing trading is a speculative activity in financial markets where a tradable asset is held for between one to several days in an effort to profit from price changes or ‘swings’

So, when someone asks me, I tell them, they are larger trades that you can old for a longer period of time.  Might be a day or two, but it could be as long as weeks or months, if you trade on a very long time frame chart like a weekly chart.  Many of our swing trades are on daily charts or range or renko charts, with bars of 15 to 20 pips in length.  Don’t get me started yet on what range or renko charts are.  You can google that or wait till my next article.

Now you notice that I talk about trade size and that is one of the main differences in Swing VS Day trading.  Day trading is much smaller trades and you might only hold them for a minute to an hour at most.  Here is that definition.

Day trading is the buying and selling of securities on the same day, often online, on the basis of small, short-term price fluctuations.

You might think of day trading as scalping, so very small price movements, but you can also day trade some larger trades, but you don’t hold your position overnight.  We day trade futures and forex every day in our live trade room and then we swing trade at night on the Daily chart or Renko chart with Keltner Bells.

Which is better?  We that is up to you the trader.  As yourself:

  1.  Do I have time to sit in front of my computer for several hours each morning to day trade?  Or do you work and can only look at the computer twice a day (before and after work)
  2. Am I the type of person who once I am in a trade, feel like I must watch it every second and worry about every tick on the chart as the trade is at a gain or loss each minute?
  3. Can I sleep at night, knowing that I am in a trade and that some news event can happen and you worry about what will happen with that trade?

Those answers about what sort of personality or trader you are, will tell you which is best.  I can tell you that Swing Trading is easier that Day Trading.  What do I mean by that?  Think about how easy it is to look at your computer once at night.  See an exact trade setup, place your trade with Entry, Stop and Target.  That is it.  Check it again in the morning to see if you need to move your stop up and lock in profit or leave it alone till you look again.

Doesn’t that sound easy?  No, staring at charts all day.  No sweating over each tick or pip of price movement.  You have stops and targets in place, you don’t need to worry about the trade, it will either win or lose.  You can’t do anything about the market and banging on the screen won’t make the market move in your favor.  You can check out this great system that gives you all of that.  Ease of use and exact entry, stops and targets.  www.keltnerbells.com

Do I day trade, yes I do.  That is only because I have the time to spend a few hours in the morning and you can make a living doing that as well.  The key is, if you are new to trading.  Start with the easy and then add the more challenging art of day trading.  Keep it simple and you will most likely win in the end.

Coach Ron



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