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Understanding the Difference Between Swing Trading and Day Trading




Full Transcript

Today, I’m going to be covering the difference between day trader, swing trader and an investor because they are completely three different animals. Just because you have a zoo doesn’t mean that every animal is the same. And it’s the exact same thing when it comes to day trading.

Differences Between Swing Trading and Day Trading

Swing Trading

Swing trading and investing. So let me make it a metaphorical way for you to understand better if you are investing. And we’re going to do it as a geography metaphor.

For instance, I am an investor. That means I am looking at the entire United States. I swing trade. And, I only focus on New York if I day trading. Or, I focus on a specific street in New York City. So how does this relate to day trading, swing trading, investing day trading?

Forex futures or stock market

You have one one one instrument or maybe you have several stocks. First of all, you know exactly which market you are trading. It could be either the forex futures options or stock market. You cannot have all four. You will lose instantly. And even within all within each of those, you should have one or two or maybe at most a few instruments that you’re focusing on personally. I only focus on one.

You are also in and out of trades in that exact same day. You never go longer, right? Usually my trades don’t last longer for 30 minutes, and that to me is a stressful time. Usually I lay between 5 to 15 minutes. OK, day trading. I focus on trading futures. Yes, many in and out of trades between 15 5 minutes to 15 minutes. Swing trading, swing trading. You could have several instruments.

It’s still very, very highly recommended that you focus on one specific market. If you’re doing commodities, maybe at this point you have several instruments. You could be crude. It could be sugar. It could be. Yes. Many, you know, maybe a few others.

Because now you’re not focusing completely only on that one in that one day you’re giving yourself three weeks to about. Yeah, it’s usually between two weeks to a month swing trading. Right. I should say that anywhere between anywhere over a day to about 3, 3 weeks, more or less swing trading. Right. It’s faster, but you could do it with less and less worry and you’re looking at longer a much longer time frames.

Day Trading

So day trading you’r in and out during the day. Swing trading usually up to three weeks, more or less, maybe a month. And investing is anything much longer than that. So hopefully this gives you more of an idea why investing is nothing to do with day trading.


Investing now investing. They say diversity is key at investing. It really is to not put your eggs all in one basket. Only for investing, only for investing day trading. Do not diversify. Do not because you need to be ultra laser focus on your one particular market investing.

Yeah, it’ll be great if you have some stocks. If you have something in commodities if you have some bonds. If you have treasury bills, it’s a different dynamic. Because for investing, I personally have been in some of my investing portfolio stocks now at least for like four or five years and I have no plans of taking them out there in my Roth IRA. That’s investing. Right. So I have. I have several different eggs. You could say right. In different baskets.

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Understanding the Different Between Swing Trading and Day Trading