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Intraday trading v/s Swing Trading. Which is better

 


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Before discussing about the pros and cons of swing and intraday trading its better to understand the meaning of both terms.

Intraday trading:
In day trading, you never carry a position overnight. The opening and the closing of the position happens on the same day. The trade has to be closed at the end of the trading day.

Swing trading:
It is the kind of the trade which tries to capture gains in stock within one to four days. In swing trading you will hold a position for a few days. So, basically you carry a position overnight.

Now lets come to the point. Its preferable to do day trading. In day trading you will not be holding a position overnight. So its less risky when compared to swing trading. Its true that you will never be able to eliminate all risk from trading, but by doing day trading, you can control your risk to some extent. Sometimes the markets will have some wild swings overnight. With the swing trading the risk control becomes extremely challenging when compared to day trading.

You may think that it requires less time than Intraday trading, but the preparation and analyzing the market is still necessary and it is time consuming. Sometimes the trades are more profitable in day trading when compared to swing trading. It becomes very important to think about risk and the appropriateness of swing investing.

Swing trading offer greater profit potential only if the trader is able to catch a major stock market trend of weeks or months. Identifying when to enter and when to exit a trade is the primary challenge for all swing trading strategies.

Swing traders will be in the danger of being hit by the stock markets. The pullback in the smaller ranges seems to be more violent than to someone looking at a weekly chart.
In Intraday trading you can always exit from the trade, when you feel that stock market is turning around. But in swing trading, it’s the other way round. If the global market changes its directions overnight, then your position might be in danger.

If you want to control the risk as much as you can, then go for Intraday trading . Since the stock market behaves crazily, you don’t want to worry about your positions in the evenings. Trading should be fun, not a headache. There are many stock advisory companies which provides Intraday tips . You can take the help of them.

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