Day Trade vs Swing Trade, which is the best? Do you even know the difference, which makes the most money, and what style is right for you? This comparison gives you the answers you need!

You probably saw me mention the words day trade and swing trade several times in the blog. I know you understand some characteristics of each of these two different trading styles, but this article aims to clarify the differences between them.

I defend that no trading style is better than another. You can analyse the differences between swing and day trading to find out which one matches your personality and your resources better. Besides that, the suitability for day or swing trading depends on the time availability, the amount of capital available, the market being traded and the psychology.

Swing trading vs day trading: Timeframe

The most known difference between day trading and swing trading is the timeframe in which the trader opts to take their trade. While swing traders take their trades to last for days, weeks or months, the day trader opens and closes multiple trades within a day.

Although both styles of trading require some time, day trading usually requires a lot more, since the trader needs to do it daily, for at least 2 hours per day.

Depending on the number of times a day trader trades per day, their profits tend to rise – that’s why many have it as a full-time job. Day traders also need to prepare, checking charts and trading reviews.

Swing trading can take much less time since the research or trade isn’t required daily. Some trades in swing trading may last for weeks or months, so many traders only check the update orders and trades once a week. This option is excellent for those who have a full-time job, for working moms, and those who want to start lightly.

At this point, you already may know that the market works at a specific time of the day. The problem is that some people are usually working when it is open – and day traders need to trade within this timeframe. However, swing traders can place an order any time of the day, to be processed the moment the market opens again.

Day trading vs swing trading: Potential returns

Although both can be very profitable if practised with discipline and a good strategy, there are some differences in the potential returns of day trading and swing trading.

If the trader has a good plan, day trading is usually more profitable than swing trading just because it’s faster. If the trader loses money, though she will lose it faster too. Although swing trading profits (and has losses) more slowly than day trading, some trades can quickly result in significant gains or losses. It happens.

You always must balance your gains and your losses to see if a strategy you’re using is working. Sure, we all lose money, no matter how good is the plan, but our profits must be bigger than the losses so that trading makes sense.

Swing trade vs day trade: Practice

We’ve always discussed the golden rule to success in trading: practice, practice, practice!

In this aspect, both day trading and swing trading are the same – you need to find a profitable strategy and put it in practice when you’re trading, over and over again.

If you know a bit about the stock market and have a good strategy, you’ll be able to generate income with practice. And since the market changes, you’ll also need to learn how to adapt your strategy to these variations.

Day trade vs swing trade: Personality

Yeah, personality is also a key factor to choose between day trading and swing trading. We all have our own unique, fabulous, and badass personalities.

Day trading, for example, is stressful. It requires focus and discipline. Are you a mother? If so, day trading has got nothing on you. If you like action and have fast reflexes, you can become a day trader more quickly than those who don’t have this personality.

Swing traders tend to be more patient since there are longer lapses between entering and exiting trades. Yeah, it’s still stressful and requires discipline, but you don’t need fast reflexes, because you can trade even if the market is not moving.

But the best thing about the day and swing trading is that in both you are your own boss. Freedom is the best aspect of trading for me. If you still want to keep on working though, you can easily become a swing trader!

Swing trading vs day trading: Capital Requirements

Day traders and swing traders can start in the stock, forex or futures market, and each has a different capital requirement to enter a trade.

The forex market is the best for those who want to start with low capital since there is no legal minimum, but we recommend you begin with at least £500.

For more information about how much money you need to start trading, please check this article.

Day trade vs swing trade – What Is Right For You?

As I said in the beginning, there is no kind of trading better than the other, just the one that is more suitable to you.

Based on this article tell me: Are you a day trader or a swing trader?

Comment in the box below and let’s chat!




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