DAY TRADING VS SWING TRADING - by Nandan kumar - CollectLo


Nandan kumar - CollectLo

Nandan kumar

Content Writer

1 min read . Aug 19 2023


Photo source:-Pinterest

Day trading involves buying and selling of assets(shares) mostly on the same day multiple times through different trades and making money from price difference. It is typically done by professional traders with proper setup and investment. It is somehow more complicated and needs proper analysis of technical charts, and requires advanced levels of tools and multiple screens. 

Swing trading also involves buying and selling of shares but for a period of two or more days that can go up to weeks. It can be done by anyone with less investment of money and screen time as compared to day trading. It is compatible with office-going or college students or intermediate-level market players.

Some of the differences between day trading and swing trading are: In day trading, many trades are made in a single day, whereas in swing trading, many trades are made over a period of time, mostly varying from 2 days to a week. In day trading, Traders try to capture short-term price action of shares and act according to their investment objectives and thus make gain/loss from the price difference, whereas in swing trading, all the processes are the same as above, but the time horizon increases. Day trading is a full-time job, whereas swing trading can be done along with your existing job as it requires less screen time as compared to day trading. Volumes of trade are very high in day trading as compared to swing trading. Day trading comes with more understanding of the technical approach, whereas swing traders mostly rely on fundamentals and less on technicals.

Swing trading is less risky due to the time horizon and less volume and is suitable for folks who want to do along with their job, whereas Day trading requires full attention and screen time, and traders should be ready to bear losses which can be up to 100% sometimes. Controlling emotions and staying calm are essential traits for day traders.