The main difference between swing and day trading is how long a position is held. By and large, swing trading involves the transfer of an open position to the next day, while day trading should stop before the daily session ends.
The difference is that day traders experience great psycho-emotional stress associated with the need to change positions at small intervals of 1,3,15 minutes. They have to track their trading to check if they are still then in the profit area.
Traders who use the day trading strategy, working for themselves or a company, use only this method to increase assets on different instruments. You need to devote all your time to this, being in stress and tension. Not everyone can withstand such a rhythm.
In contrast, swing trading usually requires longer time frames. The trader owns the stock for days, weeks, and even months. Of course, the work here is also extremely intense. It is necessary to constantly inquire about the state of affairs and check whether the situation is favorable. However, still, the trader has time to rest in a successful traders’ company to exchange experience.
Moreover, there is a very real opportunity to trade stocks and devote only part of the time to it, doing other parallel things.
This makes swing trading attractive for people looking to learn the basics and start earning on the fly. For a trader who, for example, works for a third-party company, this can be a step towards independence.
In terms of start-up costs, there are also some differences. Traders who trade stocks using day trading often compete with hedge funds, “high-frequency traders” (who work for short periods), and other seasoned players, often real professionals.
For a new trader to compete with such heavyweights, it is necessary not only to receive good training and experience but, in some cases, have access to advanced software.
In the case of swing trading, everything is easier – to multiply your assets, a standard computer and conventional trading tools will do. The start, in this case, is simpler and does not pose any big risks. Therefore, if you want to save yourself from unnecessary stress or prepare yourself for it, it is recommended to start by exploring the possibility of profit from fluctuations.