One difference between day traders and swing traders is that day traders usually focus on a short-term price movement while swing traders look for larger moves. As a result, day traders execute trades many times a day and close out trades before the market closes.
Swing traders, on the other hand, don't execute trades many times within a day. Moreso, they can hold positions for several days and sometimes weeks. Swing traders are somewhere between day traders and those who hold positions for months or even years.
In addition, day traders are expected to keep a watch on their positions. They spend long hours monitoring trading charts, looking for trade entry and exit positions. A practice that some may find stressful and time-consuming. In contrast, swing traders do not frequently need to watch their trade. This, therefore, allows them to get involved in other activities.
Holding a position for an extended period, as in the case of swing traders, makes the trade susceptible to market gaps and unexpected price swings, which could go against your trades' success.
Is Swing Trading Good for You?
Swing trading is best suited for someone not in a rush to make a quick trade. This strategy demands patience; you won't find trade setups as often as day traders do. Hence, the need for you to be calm while waiting for a trade setup.
Also, crypto swing trades are suitable for those who do not have time to keep an eye on the market. If you have a full-time job and are interested in trading and investing in crypto, this strategy might be good for you. This is because swing trading takes a long time to complete, and you do not need to check your trades frequently.
If you want fast-paced trading and prefer to analyze market information often and get your trading results on the same day, day trading or cryptocurrency scalping may be ideal for you