Day Trader Versus Swing Trader
The Day Trader only have 6.5hrs to get in and out a position with a profit. The Day trader will use a shorter time frame such as the 1hr, 15, or 1 min chart to determine the direction of a trade. Focusing on intermediate support and resistance levels and analyzing candle stick patterns will be crucial. The success lies within the strategy.
The Swing Trader can be in a position for months, weeks or just a few days. The Swing trader will focus on a larger time frame such as the Monthly,Weekly or Daily Charts in order to determine the direction of the trade. The Swing trader must also rely heavily on support and resistance levels, just on a larger time frame.
We also have position traders and (Investors) that trade based off of Monthly and Weekly chart that extends many years.
I had a recent conversation with a fellow swing trader, asking me about my lack of swing trades. My answer was simple, I have the ability to capture the same move effectively on a smaller time frame. The swing trader then proceeds to say, that swing trading results in a larger profit. Of course I disagreed, and had to show other wise with a P/L based on the same trade we took.
Swing Trader took a $85.70 Swing short Position in VRX which resulted in a $24.36/24.50 share gain. Swing Trader Short position was executed on 2.25.16.
With in 3 trading days and no over night position, I was able to execute 6 trades on VRX, with 4 being short and 2 positions long netting a 28.17/share gain, by using VRX volatility to my advantage. On Feb.29th, I was able to catch a $9+/share move from a 74.40 short, with a live post.
This chart, is based on all the positions I took, VRX was a great money Maker.
While the Swing Trader sits through the up and down movements, The Day trader is able to capture the volatility and play both sides of the fence. No matter what, If you choose to be a day trader or swing trader, just make sure you learn the necessary tools in order to master the art of Trading.
I recommend New traders to learn swing trading first, time is on your side.
