The differences between Day Trading and Swing Trading

Every trader has distinct trading emotions; while some traders are patient when it comes to trading, others prefer it to be quick and accurate. For any trader who wishes to reduce trading risk, determining which side you fall on will be a top priority. To get started, you’ll need to understand the Day trading and Swing trading strategies.

It is critical to select a strategy that complements your abilities, preferences, and way of life. If you have other things to do with your time, the day trading methods will suffice. If you have the time, swing trading is the greatest option.

The purpose of both of these trading approaches is the same, but the approach is different. Read on to understand day trading and swing trading better.

What are Day Trading and Swing Trading?

Day traders use technical analysis and charting procedures to execute a large volume of trades in a single day. The day trading approach is preferred by most newbies because they will be initiating and closing multiple positions in a single day.

With Swing trading, you will be placing transactions based on daily or weekly fluctuations in stocks, commodities, and currencies. Here, you’re trading the instrument’s major price fluctuations, such as short or medium-term trends.

You’ll also have to leave your positions open overnight for a few days to a week or two.

What’s the Difference Between Swing and Day Trading?

Both styles of trading are very valuable and it’s important to understand both of them to understand what is right for you.

That is, you can trade with both and still make a profit. The time frame is the main distinction between swing and day trading. Let’s look at the table below to learn more about this.

Day Trading 

Swing Trading 

Ideal for trades that happen in a short period, making them ideal for traders who need to make a quick choice. Day traders open and close a large number of positions in a single day.

This style of trading can be over a considerably longer period.  Swing traders, on the other hand, trade for numerous days, weeks, or even months at a time.

Similar to swing trading, it will relieve you of the stress of handling a single trade for days.

Swing trading offers fewer periods have to be patient 

Requires sustained focus for extended periods due to the fast pace and brief windows of opportunity.

Swing trading still necessitates concentration, but the time between actions such as entering and quitting transactions is longer.

Day Trading vs Swing Trading: Which is Better?

Day trading, on average, has a higher profit potential than swing trading, at least for smaller accounts. Swing trading is preferable if the trader is patient enough; otherwise, day trading is preferable.

Day trading, according to an investor who does not have the time to wait days or weeks for a certain trade, is speedier and more direct. Why would a trader wait longer on one trade? A day trader believes that each day should have a different trading approach, so why would one wait longer on one trade?

When market movements happen almost every minute, a day trader believes that a day is enough to complete a trade.

From a swing standpoint, holding a trade open for a few days or weeks may bring in bigger gains than trading in and out of the same investment numerous times a day. Swing trading entails opening fewer positions, but these have a higher potential for profit and loss.


You are free to select the option that is most convenient for you. You should not choose one over the other because of the profit it promises. Choose a strategy you will have the patience to endure while it falls and rises.

Links that may help you

Try out our free financial risk calculator to help you better understand what type of trading products may suit you

We also have articles available on the benefits of reading into charts, such as how to read trend lines, you can view this here