Day Trading vs. Swing Trading

The take home message here is, swing trading will help you avoid over-trading, and over-trading is the biggest reason why people lose their money trading. Conclusion Don’t be fooled by the marketing and gimmick trading systems out there.

I have gone trough your Forex Swing Trading lessons which has cleared my mind but what I would like to know is whether I should move my stop to the resistance or support area when the price has moved beyond Kind Regards Andre.


Swing trading vs Day trading we detail the key differences and advantages of each as we pick our winning trading strategy. Now you notice that I talk about trade size and that is one of the main differences in Swing VS Day trading. Forex trading gives you access to the largest market in the world with over $4 trillion in daily.

Even if I dont achieve my target still I dont have to loose much while swing trading. Nial great article as always … let me just add that the reason people lose money on 5 minute time frame is because things happen way too fast for us to decide correctly … however if you run a computer program to place, monitor and close trades on set criteria 5 minute TF can be very profitable on daily bases. Why would you want to have too much screen time with the noisy 5 min TF when you can do better on Daily chart TF?

You said it yourself that too much screen time is not living; so I bet the only thing stopping you from switching to longer time frame H4 at least is GREED.

Thank you Nial once again for a very insight article especially in regards to beginning traders like myself. Hi Nial You are perfectly right. Months ago I had 68 trades in a month and if I subtract the weekends, I had 68 trades in 22 days. Following your instructions from the course I changed to swing trading and the results were just Great!

Thank you for your sincerity and your knowledge Alf Garcia. Thanks so much for your time and effort to write these snippits of valuable information. Hello Nial, This lesson on swing trading is a great eye-opener which every trader who wants to make real profit needs to read. I thank you so much for such great lessons. Fuller for all your eye opening articles for making me a better trader. I really appreciate your mentorship. Again thank you sir. Great, you are always on point. Sometimes I wonder what to call Nial-an experienced and wise trader?

They are all beautifully written and well thought out. Nonetheless,I am convinced that while swing trading under the higher time frame say 4H and above is perhaps one of the safest styles to trade,I know by experience that lower time frame even as low as 1 minute time frame with its rules and in the direction of the higher time frame above yields no less amazing result though more involving.

It is definitely as easy to blow up an account on 1min time frames as it is on daily charts. This i would agree with. But i do find it hard to believe that anyone can produce the same results of a Master Traders like Soros, Jones, Lipschultz, etc, trading these lower time frames especially 1min. Trading at the best of times is equivalent to walking over a canyon with a narrow wooden bridge and a mile to bottom. Trading 1min frames is equivalent to walking over the same canyon on a piece of wire.

So to hear people are producing the same results as the traders mentioned above or any professional for that matter, on those shorter time frames is a bit of a stretch for my imagination.

Contradicting the article with over whelming evidence that trading trends and swings is the only logical method to produce consistent as a retail trader, seems to me to be a miss leading statement for fellow traders to read. Deciding to choose your swing trading method of trading has liberated my trading habits and now I have the freedom to work and play while practicing the art of reading the markets from naked price charts.

I have traded the short term charts in the past and have felt and seen exactly what you are talking bout. Your email address will not be published. Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information.

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Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets.

Don't trade with money you can't afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors.

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We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results. Checkout Nial's Professional Trading Course here. Just a simple article and straight to the point.

Thank you once again Reply. Prashant India September 28, at 1: Paul March 4, at 3: Ebuka June 6, at 4: The sooner you eliminate that the better. Halilu Yahaya March 1, at 4: Woodrow February 29, at Alfredo Garcia February 28, at 3: Thank you for your sincerity and your knowledge Alf Garcia Reply. Alan Gillanders February 28, at 2: Mustang February 28, at 1: Thank you for your article. Chinatu February 27, at 8: CCE February 27, at Great timing on this article Nial. Kayode Olatunji February 27, at Charles February 27, at 9: Love it as usual.

Moses February 27, at 8: TruthSeeker February 27, at 5: James February 26, at Haroun Kola February 26, at The time frame on which a trader opts to trade is an important decision. Day traders open and close multiple positions within a single day, while swing traders take trades that last multiple days, weeks or even months. They are different trading styles and will suit different people depending on capital available, time availability, psychology and also which market is being traded.

Between day trading and swing trading , one style isn't better than another. It is just preference, and which style suits the trader's personal circumstance. Day traders typically enter and exit trades in the same trading day with interest on quick bite sized profits and numerous trades per day. They are not necessarily trading the entire day, instead they are just interested in getting profit here and there during different hours of different sessions. Since a day trader places many more trades than a swing trader would, he incurs higher fixed costs in the form of spreads for every trade he places.

He must make sure that the currency pair that he trades has a very tight spread so as to How Trading Sessions Impact the Forex Market? Day traders close all their trades by the end of the day and do not carry them over thus eliminating the overnight risk that inherent in swing trading. Swing trades take place over periods of days, weeks, and even months. As a result, swing trading is, for many, a perfect part-time investment.

If you want to keep your day job and trade on the side, swing trading will suit you better than day trading.