Before I share my personal experience and opinion about both of these trading styles, I’d like to quickly review what they are.
is basically trying to profit from short to medium-term gains and holding onto a trade for a few days to several weeks.
When I find trades that I categorize as swing trades, I use my point and figure charts to determine “how much fuel is in the tank” meaning how far could price go from the point of entry.
The point and figure count helps me correctly determine the ratio of reward to risk.
When traders swing trade, they are usually using technical analysis to find these opportunities.
A trader who swing trades also has to be prepared for the overnight risks and weekend risks of holding onto a trade.
(there could be gaps or deep pullbacks and or retracements)
The ultimate goal of swing trading is to profit from a bigger piece of the move instead of scalping for small profits.
Some of the advantages to swing trading are that it does require less time compared to day trading off of a really small time frame like the 5-minute chart.
You can usually earn more per trade.
is normally for the trader who has all day and or night to sit in front of the computer screen and take advantage of really
short-term trading opportunities.
Again, the preferred style of trading for day trading is using technical analysis.
The difference between the two is the amount of time required to find a choice trade opportunity and the time required to manage the trade.
When I have specific days that I know I will be able to sit in front of the computer for 10 hours or more, I will day trade but when I have several things going on… lifestyle demands and so on… I will swing trade. And I setup my charts and point and figure charts accordingly.
In my opinion, since I have used Point and Figure charts into my technical analysis, I find that I don’t really worry about holding a swing trade
through the weekend or overnight. (Point and Figure is a fantastic trading methodology!)
The Best Swing Trading and Day Trading Strategies (imo)
I use a particular method that exposes the best trading entries using a Phase Analysis approach.
When consolidation is developing (whether it’s at the lows (accumulation) or the highs (distribution) I look for selling climax’s or buying climax’s that
would indicate that the trend is likely over.
As the consolidation starts to fill out, I am looking for clues using volume and wave analysis to determine who’s trading in the different
phases of the consolidation range.
I want to trade with the smart money and by doing that, when I usually get into a trade, I am usually profitable right away and I ride the momentum to the
take profit target.
This can be done on any time frame from the 1-minute chart for day trading to the 4-hour chart, the daily chart and higher for swing trades.
It’s effective and works almost every time that I use the system correctly.
In my opinion, if a trader can’t identify the battle of supply and demand on a chart and they have to rely on lots of indicators,
the trader will likely experience a lot of struggle and will have a difficult time in growing their account.
Learning the basics of classical technical analysis and then practicing these skills everyday over and over again is the only way to succeed.
But this can take a lot of time and many years of training.
If you don’t have a lot of time to dedicate to learning the skills necessary to trade profitably, you could consider using my trade copier service by clicking here.