is it better to daytrade or swing trade

Interesting how in this thread there are members who went from swing trading to day trading and also the other way around.

Generally, I think day trading is the most difficult form for trading for a myriad of reasons. For one, the R/R is generally lower than in swing trading and you will also make faster decisions than a swing trader. It may also typically require a lot more screen time (labor) compared to swing trading and can in a way feel like you're actually working for your money versus the other way around.

If you have the time, skills and resources, I think a combination is ideal and that's what I'm working towards as I'm strictly a day trader at the moment.

I have been a swing trader in the past and to me it's still stressful in that I'm always thinking about my positions regardless of their size. One of the good things about day trading is that I'm always flat at end of day and don't carry any risk or have anything to worry about.

Market regimes may also be something to consider. I imagine swing trading stocks / stock indices have been less rewarding over the last few years compared to say the strong bull trend over the last decade.
 
This feels like another Robot question-

Swing trading is much better than day trading. It's not even close.

Day trading is not investing. It is a game and an art and in involves following other people.

You are either a follower or a leader thought wise. I myself never ever look at top daily gainers, who is at 52 week highs or rah rah momentum plays that every Robin Hooder is buying that day- if you do you will find yourself trapped in numerous bad situations/ round trips.

An investor needs to see the bigger picture and a swing trade allows for that.

Think of every stockpick as a rocket ship.

It goes up and it discharges a module or jet thruster and then it goes up more and then it arcs in space and glides up more and hopefully accomplishes something before crashing/ splashing back down to earth.

They all won't crash of course just as they all won't go right up but every stock move resembles the launch sequence: there is an initial spurt, there a gathering of force and then a larger elevation. Swing Trading allows you to capture 2nd and 3rd stage events without being there for the splash down.

Swing Trading enables movement of money through sectors and rotation without leaving the market every day and if you have mindset that is fully invested you are much more on point.

There is a cynical side to day trading that I do not like. Every idea is a scam, a pump, a push--
it breeds negativity and that gets in your head.~si
 
To me daytrading contradicts the basic idea behind investing. I have always wanted to get out of the "hamster wheel" system in which we must go to work daily. The money should work for you, not the opposite otherwise what is the point? More money more quickly then retire and stop trading? Maybe after you pay thousands and thousands in fees to your broker. For me, no way. I want to swing trade until my last breath but have the benefits of not needing to be a screen slave. My swing positions make money when I sleep, walk the dog, take care of my family. Daytrading benefits if there are any can hardly ever beat that.
 
tomas262 said:
To me daytrading contradicts the basic idea behind investing. I have always wanted to get out of the "hamster wheel" system in which we must go to work daily. The money should work for you, not the opposite otherwise what is the point? More money more quickly then retire and stop trading? Maybe after you pay thousands and thousands in fees to your broker. For me, no way. I want to swing trade until my last breath but have the benefits of not needing to be a screen slave. My swing positions make money when I sleep, walk the dog, take care of my family. Daytrading benefits if there are any can hardly ever beat that.
More...
The only benifit I found was that you don't have any risk when you don't have an open position. You are flat at the end of the day and aren't at risk of a gap down.

That being said I swing trade and have found that what I save by avoiding gap downs I make up for with gap ups. I only have anecdotal evidence but it seems to even out.

The main benifit of swing trading is time spent and stress reduction. I don't have to sit in front of a computer screen each day and worry about what decisions I have to make in the next few minutes. I make my decisions when the market is closed, no stress as the price moves, and place my orders before the market opens. Set it and forget it.
 
tomas262 said:
To me daytrading contradicts the basic idea behind investing. I have always wanted to get out of the "hamster wheel" system in which we must go to work daily. The money should work for you, not the opposite otherwise what is the point? More money more quickly then retire and stop trading? Maybe after you pay thousands and thousands in fees to your broker. For me, no way. I want to swing trade until my last breath but have the benefits of not needing to be a screen slave. My swing positions make money when I sleep, walk the dog, take care of my family. Daytrading benefits if there are any can hardly ever beat that.
More...

The net change so far this year is 419.25 points on ES. Meanwhile, the sum of the daily ranges in RTH is 5348.75 points which is a multiple of nearly 13.

Day trading is no doubt hugely attractive for the select few who can tap into the potential of the market on a daily basis and can compound their returns. Now, you have a fast track to get out of the hamster wheel.

Of course, only few can do it.
 
Laissez Faire said:
The net change so far this year is 419.25 points on ES. Meanwhile, the sum of the daily ranges in RTH is 5348.75 points which is a multiple of nearly 13.

Day trading is no doubt hugely attractive for the select few who can tap into the potential of the market on a daily basis and can compound their returns. Now, you have a fast track to get out of the hamster wheel.

Of course, only few can do it.
More...

Very, very, very few can do it, even catching 10% of those 5348,75 points would be a challenge for most traders, certainly when you add comission to the equation.

Yet everyone could have bought an ES or SPY contract and walk away at the start of the year, no skill involved and only one time commission.

The thing that attracts people to day trading is the idea (or should i say dream) of getting rich quickly.
 
FTDK said:
Very, very, very few can do it, even catching 10% of those 5348,75 points would be a challenge for most traders, certainly when you add comission to the equation.

Yet everyone could have bought an ES or SPY contract and walk away at the start of the year, no skill involved and only one time commission.

The thing that attracts people to day trading is the idea (or should i say dream) of getting rich quickly.
More...

Well, of course... :)

Which is why I would never recommended anyone to pursue day trading, unless they're prepared to put in a bare minimum of five years just to achieve some basic consistency at best. For most people becoming a consistent winner in day trading is about as likely as winning in the lottery.

My answer was mostly towards to the poster who didn't see the benefit or point of day trading.

I think it's far easier to get up to speed as a swing trader or merely being an investor. And if we look at the tremendous bull trend over the last decade day trading doesn't appear as attractive in comparison. We don't know what the future holds, though, but the last few years have definitely been a day traders market.
 
The thing that attracts people to day trading is the idea (or should i say dream) of getting rich quickly.

That may be what attracts people but those that actually do it find a much different set up...
You buy and sell a number of names and try each day to walk out with a profit. Usually $1,000!

Do that every market on day of the year and it adds up. I have done this. It can get you through your 20's but at a certain point you sit back and realize. Geeze the under in the Heat, Nuggets game is a 50/50 proposition I could just have a beer and do that.... The stress is alot less.

(Tonight take Denver - 2/12 & J Murray over his points) ~si
 
Perhaps I'll express a common opinion, but I believe that a good swing trade is born from a precise intraday entry. It's just that this trade is held for some time.
 
You must log in or register to reply here.
Back
Top