What is the difference between swing trading and scalping
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Swing Trading vs Scalping
Swing trading and scalping have similarities but are distinctive too. You can make swing money in small chunks and such summed money can really make a difference.
In swing trading you perform trading in days’ time and make a reasonable amount out of your investment.
In gist, swing trading and scalping can be classified under short-term trading and you will have to employ specific strategies which do serve the very purpose of making money.
If you want to make scalping a source of income then you will have to perform numerous trades daily by maintaining a brief period on every position. The brief period in a trade can range from a few seconds to a few minutes.
From it, you can make a small profit and you will experience a little risk factor.
The swing trading is completely different, you will have to identify the highs and lows of the trading signals. If the trend is conducive then you can reap good returns over a long time frame.
Scalping does demand a steady and a quick analysis of the trade charts just to draw right inferences.
But that is not the case with swing trading, you will have sufficient time to analyse the stock trade trends by implementing bar charts and the time duration between entry and exit of a trade is high compared to scalping, It can be termed as intermediary.
The time frame analysis of candlestick charts in scalping is from 1-minute to 5-minutes and above and for swing trading the time frame is from one day to 20 day candlestick chart analysis.
You must engage yourself in constant monitoring of trade charts and make absolutely quick decisions whereas in swing trading you can perform a steady analysis and approach the stock trading market in a relaxed manner.
In scalping you will be making many trades and such high trade frequency shall attract high commissions and service fees that makes you lose more money from your generated profits.
And, it doesn’t happen when you entertain swing trading.