Day Trader Vs Swing Trader – Whats the Difference ?

[tps_title]Profit potential[/tps_title]

Profit potential

let’s get down to the profit potential so as far as profit potential is concerned it depends on the actual trader all right day trading versus swing trader if you have a crappy day trader and you have a good swing trader the swing trader is gonna make more money so this one is more reflective or relevant to the actual traders but as far as compounding positions and the and the probability of doing so that happens to favor the side of day trading.

the reason that is is that you’re gonna be making more trades every month as a day trader than you will as a swing trader and what that means is that you’re going to be taking more trades your Edge has a better chance of playing out within the month than as a swing trader who’s taking fewer trades so what that means is even though your wins are gonna be smaller than what a swing trader would be you know targeting because you’re the frequency of your wins happens a lot more throughout the month than the swing trader that compounding effect is going to take account a lot faster as a day trader all right 

whereas a swing trader you’re still looking for profits you know swing traders will look for smaller moves looking to make 5 to 10% on our position alright and as a result of that the compounding is still there but it comes out of slower pace than what you would see from a day trader alright and finally into the last section of this presentation here the personality type so which personality type bodes well with each strategy so as a day trader you’ve got to be decisive you’ve got to be patient you’ve

got to be diligent and you’ve got to be mentally tough all right a day trader if you’re looking at personality a and personality B types a day trader would be the personality a type all right these are the type of people that would be competitive they tend to work well under pressure. they tend to be decisive under pressure they’re able to flip their bias on a dime. they’re able to make split-second decisions if this sounds like you then

day trading would likely be better suited towards your personality than a swing trader whereas for swing trading what you would have is more reflective of a type B personality which means you’re a bit easier going this isn’t saying that

you’re not also patient you’re not also disciplined right you’re not also diligent you’ve got to be all of those things but a swing trader has a more easygoing, more passive approach towards the markets. they don’t want to be in a situation where they got to make split-second decisions right if you take a loss on a swing trade you’ve got time to look for other opportunities to set those trades were as a day trader if you take that loss right away you’ve got to be able to say all right is my bias

still valid if not I gotta flip my bias I got to start looking for Long’s instead of shorts etc so the day trading personality is a lot more aggressive if you will than a swing trading personality so depending on what type of personality you are as we just mentioned you’ll either fit into the day trader or the swing trader style of trading.

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