Swing trading and scapling
- Thread starter Comptalk
- Start date
I am sure many will harp in and give very detailed definitions. However, in general, the difference lies in the time you are in trades. Swing trades are usually longer term trades (think in days and possibly weeks) versus "scalping" which usually refers to getting in and out of trades very quickly (usually seconds or minutes).
Of course, the time range can be a very wide continuum.
Of course, the time range can be a very wide continuum.
I would be more concerned with having the proper trade execution platform, commissions/fees and computer equipment that's required for scalping.
I've met too many scalpers that are already losing before the first trade of the day due to the fact they don't have competive fees, improper/inadequate trade execution platform or poor computer equipment tools...
All the above has an enormous impact on your profits/losses.
Whereas, I've met a few successful swing traders that call in the orders to their brokers by the telephone.
Mark
When decimalization kicked in, scalping (the way most did it) died...
Swing trading and position trading is your best path, my thread opening Brother...
Swing trading and position trading is your best path, my thread opening Brother...
Scalping allows you to respond almost instantaneously to unexpected changes in supply and demand. You're less a victim of news and geopolitical risk. But fees and software are key, as the previous poster mentioned.
Every time the market changes there is always someone claiming that this or that type of trading is dead. If a trader's edge is based on proper trading techniques that follow from understanding supply & demand and risk management (and not something narrow like bullets or rebate trading), s/he will survive, regardless of the time frame. There are always stocks out there that move a point a day.
