Swing vs. Day Trading - Which is Better?

hey I'm Sasha optikov and in this video I brought my favorite buddies they're called the Ninja Turtles and I got this mug from a friend of mine and it's a great mug but the Ninja Turtles they're always fighting with the Foot Clan and the same thing goes with the day traders and the swing traders they're always fighting with each other and battling which one is better so let me give you a breakdown of day traders versus swing traders and which one's going to win out just so that way you can compare and understand which style of trading is better for you okay so looking at this diagram we're going to go over each segment and I'm going to compare the day traders versus the swing traders and that way you can make an informed decision which one's better for you so the holding time for a day trader is less than six and a half hours because there's less than six and a half hours in a trading day now you can hold it for maybe seven hours if you trade pre market and after market but typically you'll hold it less than six and a half hours the holding time for a swing trader on the other hand is one to three days it could be two months it could be two weeks but it's typically longer than one day the second thing is the overnight risk if you're a day trader you have no overnight risk because you buy and sell your positions within one day and that's it you're done and you're out by the end of the day and you have your night freedom with a swing trader you do have that overnight risk if a stock gaps down and that way it can affect you when trading so you'll have to make some adjustments based on your trade when trading for swing trading for overnight risk commissions typically are more expensive for day traders because you're making more trades the Commission's will chew you out it could be twenty percent thirty percent of your earnings and it can really take a huge expense into your life just the fact that you're doing more trade because you got to get in and out of those trades every single day with swing trading you'll have less commissions because you're getting in and out of positions a lot less frequently so you'll be able to save on that route looking at compounding with day trading you do compound your earnings and your account faster since you're able to trade the next day with the previous earnings that you had you're able to compound things quicker and quicker and quicker day in and day out every single day whereas with swing trading you know if you're holding it for a month or two you won't be able to use that profits that you've making from the stock or the trade until you close out the position which could be six months later it could be eight months later so with compounding the day trading is faster when it comes to your own personal mental attention with day trading you need to be very focused you need to watch the screens and watch the markets closely and then you're in and you're out sometimes you can't really leave the screens and if you do go to the bathroom you got to make it quick because you need to be back checking things or you better be checking it on your phone with swing trading you're a little more relaxed you understand what's happening you understand what's going on so you're a little more relaxed or you're more patient if the market pulls back a little bit you're okay with that if your stock pulls back a little bit you're okay with that so you'll be more relaxed since you're looking at a longer outlook in time now as far as a personality goes if you're into a type B type personalities the a type personalities that wants to trade all the time would be the day traders the swing traders would be the B type personality so you might be wondering who makes more money if you're talking about day trading versus winning trading if that's important to you well it depends it depends on who's the better trader it doesn't mean that the day trader can make more or the swing trading will make more it just means who's a better trader now what about a better life again it depends on the type of lifestyle that you want first you got to determine what type of lifestyle that you want and then go after the things that you want as far as a trading person goes so if you want to have a more relaxed lifestyle then probably a swing trader would be the one to go with if you want to be a little more active markets and you don't mind you know working a little extra or being a little honed in focused and day trading is fine typically you can be a hybrid trader and you might day trade during certain market conditions and you might swing trade during other market conditions you'll have to be adaptable as you progress in time otherwise there might be certain times you shouldn't trade if you're a day trader and other times where you shouldn't trade if you're just a swing trader but if you're able to be hybrid if you're able to be fluid and move with the current of the markets then you'll be able to be a day trader during certain market conditions and then you'll be able to be a swing trader during other market conditions so it doesn't mean you have to stick to one weapon of choice like the Ninja Turtles you can mix around and use other weapons in order to be more profitable for your own personal account now if you ask me personally what I like I like swing training a lot better it fits my lifestyle more so than day trading but there are times where I do do some day trading just because the market calls for it and there are times where I might sit out two three months out of the market and not do anything but just watch the action because the conditions aren't set up for my style of trader so if you can be a hybrid trader if you're able to be fluid and change your style according to the market then you'll be much better off and that's the route to go thanks for watching this video and if you enjoyed this video and you want to take your trading to that next level and learn faster than ever then go ahead and check out some of my courses on my website at traders fly calm and if you'd like to see exactly the stocks that I'm watching right now in this market conditions and go ahead sign up to my newsletter right here and you'll get notified when I release my market recaps just click the button and sign up and I'll show you exactly the stocks that I'm watching the stocks that I'm seeing that will break out higher so that way you can make and informed decisions and you'll learn something extra as well thanks again remember to do what you love contribute to others and most importantly live life abundantly thanks for watching I'll see you next time oh yeah and don't forget don't let go and just go go ninja go ninja go

Channel: Sasha Evdakov: Tradersfly

Views: 173,555

Rating: 4.8158488 out of 5

Keywords: stock trading, financial investing, stock market, trading on the stock market, swing trading, day trading, swing vs day traders, swing traders vs. day traders

Id: yd5KBYqCpck

Length: 6min 48sec (408 seconds)

Published: Tue Apr 29 2014