SCALPING VS DAY TRADING

There are many players in the forex market that contributes to its momentum; among these players, you will find big financial institutions and retail traders as well. Over time players in the forex market have stayed with a trading style that suits them.

The trading styles in the forex market are scalping, day trading, swing trading, and position trading.

These trading styles, alongside their timeframes all have their place in the forex market.

In this post, our focus will on scalping Vs day trading and scalping vs swing trading.

SCALPING VS SWING TRADING

In the forex market, it is not right to outrightly say that one trading style is better than the other, whatever trading style you use, one thing that matters is that your trading account should be growing meaning your profits should outweigh your losses.

That being said below is a table of scalping vs swing trading:

Scalping tradingSwing trading
Seconds to minutes (Short term)Daily to weeks
Works only on technical analysisGood for both technical and fundamental analysis
Makes dozens or hundreds of trades per day for small profitTrades from a weekly perspective
More trade setups/ more active time requiredLesser trade setups/ lesser active time required

RELATED: 5 MINUTE SCALPING STRATEGY

RELATED: BEST 1 HOUR TRADING STRATEGY

RELATED: TRADING 1 HOUR TIME FRAME FOREX

SCALPING VS DAY TRADING

scalping vs day trading

Below is the difference between scalping vs day trading:

SCALPINGDAY TRADING
Seconds to minutes (Short term)Hour to day (do not hold position overnight)
Works only on technical analysisGood for technical analysis
Makes dozens or hundreds of trades per day for small profitMakes about four to six trades in five business days
More trade setupsLesser trade setups

SCALPING VS DAY TRADING VS SWING TRADING

Below is the difference betwen scalping vs day trading vs swing trading:

ScalpingDay TradingSwing Trading
Seconds to minutes (Short term)Hour to day (do not hold position overnight)Daily to weeks
Works only on technical analysisGood for technical analysisGood for both technical and fundamental analysis
Makes dozens or hundreds of trades per day for small profitMakes about four to six trades in five business daysTrades from a weekly perspective
More trade setups/ more active time requiredLesser trade setupsLesser trade setups/ lesser active time required

IS SWING TRADING PROFITABLE

Before I go any further, let me state that swing trading is profitable.

Swing trading, in my opinion, is the best and most profitable trading strategy. There are several reasons why I prefer swing trading to other types of trading.

Let me explain why swing trading is beneficial in more detail.

Unlike other trading styles that require lower time frames and multiple setups, swing trading eliminates the need to trade every day, allowing you to spend less time in front of your computer.

Swing trading is profitable since it is done at a higher timeframe, such as D1 or above. Many traders who experience fake out trades focus on the much lower timeframe; in swing trading, it is impossible to be caught in a fake out trade when following the dominating trend.

Swing trading allows for a distinct zone of market reversal and continuance, as well as ample time for thorough market analysis.

Swing trading is similar to the concepts of selling high and buying low, as well as order block and supply and demand trading.

In swing trading candlestick pattern and chart pattern are more stable

In swing trading you will see a clearer overview market structure of the currency pair.

In conclusion, forex trading is based on the principle of selling high and buying low and this is what swing trading is about.

SWING TRADING VS DAY TRADING-WHICH IS PROFITABLE

Swing trading and day trading are both profitable trading strategies, but they each have their own set of advantages and disadvantages. Swing trading, day trading and scalping are all topics covered in this post.

For the record, swing trading provides a sense of security when done correctly, knowing that your odds of losing money are quite minimal.

 Let’s pretend you have points A, B, and C; swing trading is like starting a movement from point A when there is little momentum and going all the way to point C before exiting the trade, which can last anywhere from days to weeks, whereas day trading is like entering the trade much later and existing before point C because day traders don’t hold positions overnight.

REALISTIC SWING TRADING RETURNS

When looking for realistic swing trading returns, keep in mind that traders still apply their swing trading technique differently, which is why their results will differ. Let me offer you a percentage number of a realistic swing trading return on a monthly growth plan before I go into more detail.

On a monthly growth a realistic swing trading returns will be about 5-15 percent.

This is achievable because the swing trader will be looking at a variety of trading pairs in order to capture a long-term trend.

Remember that swing trading is a trading strategy that provides peace of mind and allows you to worry less of market fundamental news release

Swing trading does have a lower setup than scalping and day trading, which is why, in my experience as an FX and synthetic trader, I’ve learned to combine the two. Combining the two trading strategies yielded a solid trading outcome and much more setups than trading one approach alone.

HIGH PROBABILITY SWING TRADING STRATEGY

A high probability swing trading strategy can become a trader’s best swing trading strategy when the trade outcome is over 90%.

For a trader to be successful with swing trading, he must have basic knowledge of forex market structure and price action.

One necessary temperament a swing trader cannot do without is patience.

I am going to share the best swing trading strategy in my opinion because it has worked really well for me.

Below is a detailed explanation with Images of one high probability swing trading strategy I use.

high probability swing trading strategy D1
High probability swing trading strategy H4

SWING TRADING SUCCESS RATE

Traders have differing opinions on what a swing trading success rate should be. Some say it’s 10%, while others believe it’s as low as 5%.

Because of my experience trading the forex market, I’ve learned how to properly mix swing and day trading for higher returns; as a result, I can confidently state that combining swing and day trading will provide you better entry and profits.

A trader will make better than 10% with the swing and day trading combination, and the stop losses will be much tighter.

The way to achieve this is when price gets to a swing high or low, you can wait for a chart pattern or a confluence breakout on a lower timeframe (H4, H1). That is where your entry will be.

DAY TRADING VS SWING TRADING VS POSITION TRADING

All trading styles are unique and have their own set of benefits and drawbacks, which is why a trader should take the time to figure out which one he or she belongs to.

Below is a tabular comparison of day trading, swing trading and position trading.

DAY TRADINGSWING TRADINGPOSITION TRADING
Hour to day (do not hold position overnight)Daily to weeksFrom days to weeks to months
Good for technical and analysisGood for both technical and fundamental analysisworks for both technical and fundamental analysis
Makes about four to six trades in five business daysTrades from a weekly perspectiveTrades form a weekly to monthly perspective
Lesser trade setupsLesser trade setups/ lesser active time requiredVery few trade setup in a long time (years)

IS SWING TRADING SAFER THAN DAY TRADING?

Yes and No because trading has to do a lot with your trading experience, risk management and patience as well. All trading styles have their advantages and disadvantages.

WHICH INDICATOR IS BEST FOR SWING TRADING?

The truth is that there are no best indicators for swing trading, no matter how fancy the indicators look; they should be a secondary option. What really matters the most is Identify the market structure (like major support and resistance zones on D1) of the forex pair to be swing traded.

WHICH MOVING AVERAGE IS BEST FOR SWING TRADING?

Is funny how traders keep asking the wrong question, there are no best moving average for swing trading. All moving averages will always adjust to the market structure. Learn market structure first.

IS SWING TRADING A GOOD STRATEGY?

Yes, swing trading is a good strategy as well as other trading styles. However your style of using swing trading strategy is what sets you apart from other traders.

IS SWING TRADING THE MOST PROFITABLE?

All trading styles are profitable, and each has its own set of benefits and drawbacks. It is how you apply them that determine how profitable your trade is.

IS SCALPING MORE PROFITABLE THAN SWING TRADING?

Both trading styles are profitable and they both have their benefits and drawbacks. At the end of the day what really matters in the forex market is the market structure.