What Are Day Trading and Swing Trading? What’s the Difference?

Day trading or swing trading refers to the practice of buying and selling multiple stocks within a single day. It is the perfect vehicle for the short term intra-day type trader, who would like to hold on to a position for a short time, a few minutes or a few hour, and squares their positions prior to the end of the day.

Day Trading

The stock or futures day trader is someone who is making trades intraday. They tend to do this with frequency throughout the day. A day trader may trade a few times per day or dozens of times per day.

Swing Trading

The swing trader could be a stock, option or futures investor. This type of trader is looking to take strategic bites out of the stock market that can stretch over a day or multiple days and weeks.

Long Term Swing Trading

The long term swing trader is very much like the regular swing trader, the only difference is their focus is on weeks and months as opposed to normal swing traders who focus on singular days.

Day and swing trading involve taking a position in the markets with a goal of squaring that position before the end of that day.

A day trader typically trades several times a day looking for fractions of a point to a few points per trade, but who close out all their positions by the end of the business day.

A swing Trader has slower cycle of trades, meaning less trades to make, therefore fewer commissions, but also less chance of mistakes and an increased ability to “snag” the more significant multi-day profitable swing trades.

The goal of a day or swing trader is to capitalize on the price movement within a market trading day.

Unlike investors, a day trader may hold positions for only a few seconds or minutes, and never, ever overnight.

What Day Trading really means?

“Day trading ” is a widely misused and misunderstood phrase or term. Officially day trading means to not hold on to your stock positions longer than the current trading day; simply put, not holding any stock position overnight. this is really the safest way to day trade, because you are not exposed to any of the potential losses that can occur, while the stock market is closed due to news that could affect the prices of your stocks