What’s the Difference? Day Trading Vs. Swing Trading

What’s the Difference? Day Trading Vs. Swing Trading

Traders usually fall into two major categories: Day Traders or Swing Traders. Knowing the differences can let you in on the secrets to making more gains – faster.

The biggest differences are frequency of trades, trading methods, and profit potential. This chart shows the main differences between them, we will get into the details later on:

Day Trading vs Swing Trading chart 1

Day Trading vs Swing Trading chart 2

What is Day Trading?


Day trading is about making more trades within a single day rather than over a weekly or monthly period. The goal of day trading is to make small profits every day by trading multiple stocks.

You’ll be surprised to learn that many day traders start and end their day with zero stocks left in their possession. It’s all about turning a quick buck every day to get the most profit possible.

It takes research, intuition, and LOTS of vigilance to make money with day trading, plus LOTS of capital to start. But, some people have risked it all and won big through day trading.

What Is Swing Trading?

Arrow overlaid on top of cash

Swing trading flies in opposition to the “quick turnaround” mindset of day traders. Swing traders can relax and make money while day traders slave away watching the tickers tick.

Traders with their eyes on the horizon often lean into the benefits of swing trading tactics.

Swing traders know what the stock market is going to do days or weeks in advance, and they invest early – hold, and sell at the best point.

Normally, those who are primarily swing traders, don’t need to work full-time to see gains. They have a lot more flexibility to wait those few extra days to make extra profits. Plus, the capital you need to start is dramatically less to start seeing returns. That means anyone can start swing trading, even if you don’t have much to start with.

When swing traders lose, day traders may lose less because one of their trades might pull through. If you’re making money with swing trading part-time, you could find financial freedom for a fraction of the stress.

What’s Best For You?

Every investor finds their own wayto wealth and you need to do what works for you.

As a rule of thumb, day trading is better for those with extra funds to invest, access to more accurate market tools, and a full time commitment to trading.

On the other hand, swing trading allows you to have other projects and it’s not as much of a time commitment, you can use any normal brokerage account, and you have no pressure to trade all of that day’s investments.

What’s Next?

If you want to learn more about the stock market, or other methods of trading, follow @Simbastocks and @Successful_Stocks on Instagram, attend our weekly webinars, or sign up for our courses. Learn to make better trades from experts and be a part of a growing investment community!

Questions? Reach out directly to our team!

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