Over years, traders have created a lot of trading styles, but today I will compare two which are mostly used by traders all over the world in order that you can choose the style which is better for you.
Day traders: they can hold positions from minutes to hours, but never after closing markets.
Swing Traders: they can hold positions from days to months, because they fundamentally trade most of the time, otherwise they trade using weekly or daily charts.
Day Traders: they never hold positions overnight, so there is not any risk.
Swing Traders: As they hold positions overnight, they experience much stress. The price can gap causing a margin call, thus they need to make some adjustments.
Day traders: It depends on how many trades they make per day. From 3 to 10 trades per day, the commission can be between $12 to $50.
Swing Traders: They don’t have a lot of commissions, because they trade less.
Day Traders: It is common for them to reinvest their earnings, since they trade frequently.
Swing Traders: They rarely reinvest their earnings, because they hold positions for months
Day Traders: They must be very concentrated in watching the charts. If they get distracted from the markets, they can easily miss an opportunity for taking profits or cutting losses.
Swing Traders: They are more relaxed because they are long term-oriented traders, so they can check the price just by phone. They get stressed only when the price is close to their stop orders.
On the basis of this, day traders and swing traders have both pros and cons, so the traders must be very flexible in choosing their style.
For me, as an order flow trader, I can be a swing trader and a day trader in the same day.
If you are confused to choose your own trading style, then let me tell you that all the trading styles can work for you depending on the market’s need.
Don’t waste your time looking for which trading style can make you tons of money, create –instead- your own strategy (manual or automated) and back-test it hundred times.
After you get your golden strategy, you can trade in live account. But don’t forget that you have to be very disciplined if you are trading manually.