One of the surest roads to success in trading is sticking to a time frame that suits your personality. Time frames can be summarized best between day trading, swing trading and position trading. Let's take a look at each styles overview in order to help you decide which is right for you.
Intraday trading or day trading is also known as scalping and traders places several trades a day which last for very quick periods of time lasting often minutes and sometimes up until hours. Day trades are generally small in size and are very frequent with many trades taken each day.
The advantages of day trading or intraday trading include little risk as each trade generally has a very tight stop loss and also small take profit levels. Scalping takes a lot of intense focus in order to manage each trade and watch the market fluctuations.
There is always risk in trading and while there are upsides to day trading there are also down sides. Cons of intraday trading include traders due to frequent trading pay a high amount of fees through spreads or broker commissions. Also small mistakes can turn into large losses if a position gets away from a trader and their account can loss a lot of money in a very short amount of time.
Swing trades usually last anywhere from one day up until several days or even a couple of weeks. Swing traders typically are trying to catch trend reversals or price retraces. Swing traders tend to use recent swing highs and lows as points of reference to set entries and exits off of.
