posted
How are the two different? Some may say the answer is that swing trading involves buying and selling over several days while day trading completes a buy and sell in a matter of hours, if that long.
Are they really that different though. I am mainly a TA player. If I can't see it going up on a chart I won't play it.
My question though, is if there is really a difference between someone that swing trades with TA and someone that day trades with TA. Is the TA for either different? One of the beauties of candlesticks is they can be used for any time frame.
Stockcharts.com automatically adjusts the TA tools time frames as well. For example, I can say I want a 20 and 50 day MA overlayed on my chart. If I'm looking at a 6 month chart the 20 and 50 lines are daily. If I switch to a 10 day 10 minute chart then the 20 and 50 lines are now measured as 20 minute and 50 minute moving averages.
So again I ask. Is there a different methodology between swing trading and day trading?
Posts: 1504 | Registered: Sep 2004
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posted
The difference is the daytraders have no patience to be swing traders lol that and you have to be able to make quicker decisions in daytrading as opposed to swingtrading where you can sometimes take your time on making a decision...
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Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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posted
Also a difference in what you are looking for at the begining.
If you are a daytrader then you are looking for a stock that is headed up and has good momo right then. Entry at bottom isn't as important to you as momo. For the daytrader immediate movement is a must. If it ain't moving up you are taking a huge risk.
If you are a swing trader you are looking for a stock that has found a bottom and looks to be creating an uptrend. A swing trader is much more interested in finding the bottom than in seeing immediate movement. You can watch or even get in while it is still building up for the reversal.
Exit points will also vary depending on your style.
-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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Swing Traders •Method: time the market by buying at the swing low and selling at the swing high, or the reverse. Trades can last from minutes to days, sometimes weeks. Swingers often hold a position overnight. They take a longer view of the markets than day traders. •Typical hold time: less than 3 days. Some will say 8 to 10 weeks, but they are better classified as position traders. •Trading day: More relaxed than day traders. Can have a different day job, but it may be difficult to trade while on the job. Interruptions to the trading day are tolerated. •Research time: Not as intensive as day traders.
Day Traders •Method: Usually trades a small group of securities each day, closing out most or all positions by day’s end. Day traders are range traders, buying low, selling high, and then reversing. Day trading is less intensive than scalping. •Typical hold time: can be minutes, but is usually hours -- longer than a scalper. •Trading day: Several hours long (2 to 4). Needs uninterrupted trading time. This is their day job, a full time job. •Research time: two to four hours daily with some spending extra time on the weekends. Some say the trading part is small, but the hunt for opportunities takes hours.
Posts: 18 | From: Salt Lake City (unfortunately) | Registered: Jul 2006
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If im swinging i will hold it 1 to 30 days, Daytrading im looking for HYPE like a great PR or Big volume that i can jump in on, learning to read LL2s is a must IMO for day trading might be in for ten mins are sell into the EOD run. JMO
-------------------- LIFE IS 10% HOW YOU MAKE IT AND 90% HOW YOU TAKE IT! Posts: 9276 | From: San Diego CA | Registered: Jul 2006
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