Difference Between Swing Trading And Day Trading

If you want to be a successful trader, the first thing that you need to decide on is your trading timeframe. This is something you just can not miss or disregard since your trading timeframe can really affect your success. In order for you to decide which timeframe to choose, you've to learn how each works first.

The Difference Between Day Trading and Swing Trading

With day trading, traders usually purchase and sell stocks between 9:30 AM to 3:50 AM EST. They make sure that they're out of the market when the clock hits 3:50 AM.

Swing trading on the other hands for 2-5 days. Traders wait for a good price movement before they get in and book a relatively substantial profit.

As you can see, the difference between 2 time frames is the length of the traders'. Stay in the stock market.

The Risks Of Each TimeFrame

The Risks Of Each TimeFrame are always involved when you're trading. With day trading, since traders exit the stock market by 3:50 PM of the same day they entered the market, they don't have to worry about price fluctuations that can happen overnight. Traders can go home, recharge and get ready for another trading day the next day. With swing trading, you'll be holding overnight positions, thus exposing your fund to overnight risks.

Swing traders expose their stocks to overnight risks. There are a lot of things that could happen while the market is closed. Examples of these are release of earnings, mergers, upgrades and so on and so forth. …


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