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Active Traders are basically who are always in market even if its bullish or bearish. Due to Active trader market and instrument get liquidity.Swing Trader :is based on identifying moment in stocks, commodities and currencies that take place over a period of days. A swing trade may take a few days to a few weeks to work out. Unlike a day trader, a swing trader is not likely to make trading a full-time career.<br>
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Difference Between Day Trading and Swing Trading Active Traders are basically who are always in market even if its bullish or bearish. Due to Active trader market and instrument get liquidity. • Day Traders • Swing Traders Both are seek profit from short term trade.
Difference Between Day Trading and Swing Trading Day Traders : As name suggests its involves in only Day position. Basically they are scalpers or technical analysis base trader. their objective to make money in trade which will be sq up before market close. Typically they make money in small profits on numerous trades in a day with capping losses of unprofitable trades. Day Trading is full time profession. Day Trading required lots of studies and unique skill to become master of it. – you can read more about Day Trading here.
Difference Between Day Trading and Swing Trading Pros: • No overnight Risk involved – as position covered or sq up in Day • Low Cost of Brokerage and other statutory expenses. • Not required Fundaments knowledge or data for studies • Expensive education not required • Being your own boss – Day trader mostly work alone • With small capital take big position with help of Leverage. ( Exposure )
Difference Between Day Trading and Swing Trading Cons: • Risk of substantial losses • Required full time attention • No consistent pay • High stress and risk of burnout Swing Trader :is based on identifying moment in stocks, commodities and currencies that take place over a period of days. A swing trade may take a few days to a few weeks to work out. Unlike a day trader, a swing trader is not likely to make trading a full-time career. Swing Trading also called short time positional trader.
Difference Between Day Trading and Swing Trading Pros: • Can do with full time job not required full time in Market • Potential for significant profits • Less stress as not required constant monitoring • Benefit of long move – Mostly profitable move Swing trader can Captured • Expensive Technical Software not required for monitoring Cons: • Higher margin requirements • Chances of higher risk due to open position over night • Fundamental and macro factor also effects
So , Day trading and Swing trading which is better ? Day trading and swing trading both have advantages and disadvantages. Neither Day trading strategy is better than Swing Trading. traders should choose the method which is best suits for him base of his skills, preferences and lifestyle. Day trading is better suited for who wants to full time profession of Stock trading and who are individuals. Swing Trading for those who want to earn from market in short term but don’t have time to watch full day market moment.
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