Swing or Day Trading? Which is Better? | Value Network

Swing or Day Trading? Which is Better?


Looking to invest in the financial and cryptocurrency markets but don’t know which trading strategy to use? Don’t stress yourself as there are thousands of other budding investors asking the same question.

As you know by now, there are several trading strategies, each with different profit potential. When considering a trading strategy for entering the market, a trader must understand the various aspects that affect trading, including a trader’s time/availability, capital, and expected returns.

Time is the most important factor for a trader, so let’s compare two popular time-based trading strategies, namely day trading, and swing trading. At the end of the day, the investor must understand which trading strategy is more profitable between the two.

Day trading

Day trading is when a trader in stocks or crypto assets opens trading positions and closes them on the same day, that is, within 24 hours.

For example, a trader can take a trade position at 2.00 am and close his position at 1.00 am. It turns out that the deal was suspended for 23 hours.

The idea behind day trading is so that once a trader closes their account at the end of the day, they won’t worry about any market changes that might happen unexpectedly. Moreover, day trading involves only a few trades in just one day.

Day trading requires the trader to be on the spot at all times to make decisions based on market changes. Thus, sometimes day traders do not have enough time to rest as they stare at their screen all day.

For example, the cryptocurrency market works around the clock, seven days a week.

Different platforms set different trading limits for day trading, and for a day trader to make excellent profits, he must invest large amounts of money.

The main quality noted by day traders is that they make quick decisions based on the prevailing market charts. Although day traders strive to generate income on a daily basis, they do not buy assets for safekeeping. Instead, they do thorough research of the asset and then trade it in the market.

Day traders take into account volatility, the ability of an asset to overcome resistance levels, and other factors.

Day trading is hectic. Thus, traders should perform well in the face of strong investment pressures and focus on longer periods.

Swing trading

Swing trading involves trading that takes longer, days, weeks, or months. Swing traders strive to maximize their profits in the long run. Therefore, they take long market positions.

The swing trader does not spend all of his time at the computer. Trading is more like a part-time job for a swing trader, unlike the day trader.

Most people assume swing trading is simpler than day trading due to the fact that you don’t have to sit watching a screen all day monitoring charts. Decisions are made more slowly, so any investor with investment knowledge can participate and generate income in the long run.

Swing traders need to be patient and very optimistic.

Swing trading: the entry point is drawn from the blue line

The advantage of swing traders is that they can run their positions even when the market is closed, saving traders time spent on watching charts frequently. 

There are no minimum capital requirements for swing trading. In cryptocurrency, the minimum requirements vary depending on the platform you choose. However, most people choose to invest at least $1000 for a reasonable income.

Profit for day and swing trading

Generally, the potential for high income in day trading is very high than in swing trading. The effort, time, and capital spent on day trading are often higher than swing trading.

The day trader is experienced in investment and business. Thus, the trader knows the best time to enter and exit the market with the most profit per trade.

Day traders can take advantage of even the slightest volatility in the market and exit the trade with high profits.

Although the potential for profit is high, the level of risk in daily trading is also high. You can make excellent income only to lose it before the end of the day on another trade.

Swing traders have tremendous potential for large profits, but not as high as day traders. Profit for traders grows slightly more slowly than for day traders. However, depending on the level of knowledge of the trader, they have an excellent chance of earning as much as day traders.

Since the accumulation of profits is slower in swing trading, the risks are also lower. Swing traders can stay in the market longer and leave when the market is profitable, thereby insuring against risks.


A crypto trader needs to determine the best trading strategy that suits his needs for profit.

For a newcomer to cryptocurrencies, this has never been easy. However, when making investment decisions, you need to consider the cost of capital and time availability. If a trader has enough time, then day trading is the best option for him.

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