The Differences Between Swinger And Day Trader

  • By Joe Sheli|11 Oct 2019

Day Trading

Day trading is a trading style that fits people with a lot of “free-time” that can be devoted to trading. A day trader is a trader that “works” and trade 5 times a week.

How does it work?
Day traders will never “go to sleep with assets”, which means, you will always close your trade and sell your whole portfolio in the same day.
The financial markets only work a few hours, and when the market is closed, the day trader will always have all of his money in cash, while his asset culm will be empty.

Day trading is all about finding assets that we can predict that will move very soon in a big enough movement.
A day trader must know to calculate his/her risk-reward ratio, which will make sure, that in the long run, if he will stick to the plan, he’ll increase his chances of making money.

Day trading is a very active trading style that will require a lot of practice, and even with the perfect guide, you might lose some money in the beginning, that is why it is very important to track your trades, and learn from your mistakes, by yourself, or to hire an analyst that is experienced, and will be able to help you to fix those mistakes, and will save you a lot of money.

Swing Trading

Swing trading is a whole different game, comparing to day trading.
Swing trading style will fit better to people without a lot of time to spend on the market daily, traders with a full-time job, that can only trade once-twice a week.

Swing trading is not long-term investing. In swing trading the trader will usually trade very big sizes comparing to the account, but still smaller than the amount that the day trader will trade.
Swing trade will usually last between 1 day to a few weeks.
Don’t make any mistake – Swing trading is a very active trading style, that will require a lot of patience and psychology training.
You must be prepared and know what you are getting in to.