Difference between Intra-Day Trading and Swing Trading

Difference between Intra-Day Trading and Swing Trading

Submitted by adil on Tue, 02/05/2013 - 10:02

There are quite evident differences in intra-day trading and swing trading. This article is based on the comparisons of both types of trading.

Intra-day trading is also termed as day trading. It is a form of trading in which buying and selling of currency or security takes place during a single day. On the other hand, swing trading is a way of trading especially in forex markets to earn the profit that is carried during the time period of many days and even weeks.

In day trading, the traders allow to trade for a minimum time period like for minutes or some hours and in return they get a chance to trade as many times as they want in just one single day. Day traders almost end their trading when the day arrives to an end with the definite purpose of closing their positions for the night. The highly liquid currencies are involved in day trading with traders using great number of leverage and best short term based trading strategies in order to invest on them during the small price shifts.

However, there is abundance of such traders that don’t feel like investing on intra-day trading due to high risks and unjustified rewards in relation with those risks. The rate of win in day trading according to them is very low while complexity and risks are quite high. All in all, day trading requires extensive research in the market with the detailed knowledge of the price movements and best ways to apply the right strategy at the right time.

On the contrary, swing trading is based on the use of technical analysis of the data and information regarding the selected pair of currencies involved in�forex trading�that is based on short term value shifts. In this way, swing trades remain in progress for weeks and days depending on the consequences. The trading remains continued depending on the intra-week and intra-month oscillations in overselling and overbuying positions.

The best way to conduct the swing trading is when the forex market does not show any trend and have the flat graph all over. The point that is important to note here is that there are certain swing trades that can be ended even in one day provided that entry and exit signals arises in that particular day. Swing trading is not the best for m of trading for the novice traders but it is purely beneficial for professionals.