Day trading vs swing trading

Quote from Laissez Faire:

For the average guy, the difference between being glued to the screens and the jobs you mentioned is that even mediocre performance on average or bad days at work still gives you a steady paycheck.

In order to excel in a normal life job, I'd say you need a combination of dedication, interest and possibly talent.

Another huge difference between succeeding in any other profession is that the knowledge and the 'what to do' is usually public knowledge. There's no such thing in trading. Half the work is just getting started and learning what to focus on.

I may very well not succeed as a day trader, I'm well aware of that, having spent thousands of hours glued to the screens both live and backtesting data. I know what I'm up against and it's a different picture than the snake oil vendors are painting.

But maybe you disagree?
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So "mediocre performance on average" is acceptable to you. Over time, I'll bet the boss would disagree. Moreover, YOU KNOW what it takes to excel. "Bad days" and failures will and do occur no matter what your performance level.

As for knowledge, you have described a holy grail. OCHLV+LastPrice is the public knowledge of the market, and one or more of those variables form the basis of ANY "what to do" in the market. If you can't find or develop a successful method you are comfortable and confident with using one or more of the public domain variables, all that's left is luck.

Good luck to you.
 
One other thing that I don't think has been mentioned is the fundamental world and the price action world. More often than not (maybe depending on what you are trading) they don't seem to sync up instantly which is another pitfall for a day trader that needs to ask why is this happening or why did that happen. Which is another reason automating is such a godsend for so many. Where as with swing trading the fundamental world seems to have time to reflect itself in price. I guess efficient market theorists would disagree with this but I only know what I observe.

So if you have the ability to not give a shit and just do what you're supposed to do over and over and over again without questioning the plan you might be able to day trade. When it starts to feel like a video game and you actually start to enjoy taking your controlled losses you're probably on the right path. I've gone through stretches where I can do this but then my damn human brain wants to step in and make things way harder then they need to be.

Because of my lack of discipline I've been relegated to the world of options trading which is more complicated when it comes to planning for all the what ifs but I'm happy, not as happy as those days where I would see a setup take it boom 2k in my pocket and off to the golf course.
 
Quote from Laissez Faire:

Yes, but the frequency of bar plotting do make a difference.

It's like being in a street fight with no time to think compared to playing chess where you can take your time before making a move.
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Time isnt the issue, markets move real slow these days. :D

The problem with day trading has always been cost, and its especially apparent in a low volatility environment. Each trade yields less profits when there is low volatility but the cost per trade remains the same, you are almost guaranteed to lose in the long run.
 
Quote from trickshot:

Time isnt the issue, markets move real slow these days. :D

The problem with day trading has always been cost, and its especially apparent in a low volatility environment. Each trade yields less profits when there is low volatility but the cost per trade remains the same, you are almost guaranteed to lose in the long run.
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there is bigger problem with day trading and it is called scalability.

I find it funny that daytraders claim 70% win rate yet their bet size remains up to 10 contracts after many years.
 
Quote from toolazy:

there is bigger problem with day trading and it is called scalability.

I find it funny that daytraders claim 70% win rate yet their bet size remains up to 10 contracts after many years.
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Scalability isnt a problem unless you are trading an instrument with little liquidity.
 
I don't know of any swing traders supporting a family, but maybe I'm just in the wrong circles. Neither is easy, but based on my experiences over the past 15 years I would vote for daytrading if you intend it as a profession.
 
Whichever is easier much depends on personality traits. So I'd recommend trying both ways and see which is more comfortable for you.
 
Thank you for all your replies. I currently day trade the grains and swing trade stocks through options. At times I do better day trading and at other times I do better swing trading. I guess it all depends on the market contions.
 
Laissez Faire said:
Technically, it's the same or similar, yes.

But if you're swing trading, you can study charts while the markets are closed and pre-plan your decision without any pressure or need to act fast.

Day trading is a completely different animal since the market is moving in real-time and you need to act fast. That obviously affects the decision making process.
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I hate to bump an old thread but I couldn't pass this post without bringing attention to this passage because I think that it's the most important distinction between day trading and swing trading.
 
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