- Swing Trading combines the best of two worlds --
the slower pace of investing and the increased
potential gains of day trading.
- Swing Trading works well for part-time traders —
especially those doing it while at work. While day
traders typically have to stay glued to their
computers for hours at a time, feverishly watching
minute-to-minute changes in quotes, swing trading
doesn't require that type of focus and dedication.
- While Day Traders gamble on stocks popping or
falling by fractions of points, Swing Traders try to
ride "swings" in the market. Swing Traders buy fewer
stocks and aim for bigger gains, they pay lower
brokerage and, theoretically, have a better chance
of earning larger gains.
- With day trading, the only person getting rich is the broker. "Swing traders go for the meat of the move while a day trader just gets scraps." Furthermore, to swing trade, you don't need sophisticated computer hook-ups or lightning quick execution services and you don't have to play extremely volatile stocks.