Day Trader Vs Swing Trader – Whats the Difference ?

[tps_title]Gap market chart[/tps_title] 

Gape market chart 

you’re not gonna have your stop-loss honored because there’s no traded volume out there everything’s gapped up so you’re gonna take a larger loss than anticipated and that’s one of the risks associated with swing trading is that overnight and that weekend gap risk all.

right so now let’s dive down to the costs


as you guys can see on here the costs associated with day trading are more expensive than swing trading and the reason for this is because day trading software the software used by day traders is a lot more sophisticated than what swing traders need a lot of day traders to utilize order flow tools which means

that you need advanced order flow packages a lot of day traders also require new squawks which means you got to subscribe to a new squawk alright so all of these things combined can add up to quite a lot and another thing that will add up is also Commission’s so as you guys can see on the frequency tab over here 5 to 100 trades per day you

know will add up the more trades you’re taking the more Commission’s you’re paying and the higher your costs increase alright so as far as the software perspective day trading is more expensive and as far as a commission you know the cost of doing business perspective day trading is also more expensive because you’re going to be taking more trades whereas with swing trading the costs as far as software is a concern is less expensive because you don’t need as sophisticated a tool as you do for day trading all right with swing trading all you need is candlestick charts

you know simple software package that can offer candlestick charts volume profile you know regular volume moving averages some indicators like that if you need those but what swing traders need is a lot less intensive than what day traders need which means it’s cheaper all right so you can get away you can rather get by with a nice software package and that offers you know regular charting

as long as you have a price chart as long as you have volume and volume profile that’s all you need as a swing trader to succeed on top of that because you’re not making as many trades on a monthly basis instead of taking five to 100 a day you’re gonna be taking around five to ten a month okay and so as a result of that you’re going to be paying less in commissions than you would as a day trader making swing trading the less expensive option to start with.

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