subject: Find Out What Best Suits You - Day Trading Or Swing Trading! [print this page] You are what your personality makes youYou are what your personality makes you. The same goes in the world of trading. The trading style that you choose for yourself should match your personality. You should only take up day trading if you have the right personality for it, otherwise leave it. You should take up swing trading if it matches your personality.
What is the difference between day trading and swing trading. In day trading, you mostly close your position at the end of the day. As a day trader, you want quick profits. You are on the lookout for opportunities in the market that can give you a quick and fast killing. With experience, you will spot them soon. Now if you are an action oriented person who wants to take risk for quick profit making then day trading is for you. You will have to sit in front of your computer for perhaps maybe a couple of hours every day monitoring different charts.
Many day traders spend hours sitting in front of their computer monitors waiting for the right time to make a quick killing. 90% of the people who try day trading give up within a few months finding it to be stressful. No doubt for inexperienced it can be stressful. You can easily fatigue yourself by sitting in front of your computer for hours everyday.
But this doesn't mean that day trading is not popular. Many people do it successfully by trading different markets like stocks, forex, futures, commodities, ETFs and even options. Day trading is best suited for risk takers and action oriented personalities who love monitoring the markets for hours on a daily basis.
On the other hand, in swing trading, a trader looks for a trend that can last from a few days to a few weeks and tries to ride it at an early stage till such time the profit targets are met. Swing traders are most trend riders.
As a swing trader, you don't have to monitor the market for hours everyday. Just 30 minutes to one hour will be enough for a good swing trader to know when is the best time to place a trade. When you open a trade, you leave it open with proper stops and go to other work whatever you want to do. Just monitor your trade eaveryday for 30 minutes to see how it is going. After placing the stops, you are all set and free. The market will take it's own course. If it moves in the right direction, your profit target will be met. If it moves in a wrong direction, the stop will close your trade before you lose too much.
Day trading is a serious business. Many people think that they can day trade as a hobby. Never make that mistake. For most people who have a job, day trading is out of question. But swing trading is possible. At the end of the day, they can monitor their trade and move the stops if the market is changing. In the end, choose a trading style that best suits you!
by: Ahmad Hassam
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