Swing Trading: This strategy typically involves holding positions for several days or even weeks.
Swing traders aim to capitalize on larger price movements or "swings" in the market, often targeting medium-term trends.
They use a combination of technical and fundamental analysis to identify opportunities and make informed decisions.
Scalping, on the other hand, operates on a much shorter time frame, with positions typically held for just minutes or even seconds.
Scalpers focus on making numerous small trades throughout the day, profiting from tiny price movements.
This style of trading relies heavily on technical analysis and the ability to quickly execute orders, often depending on market liquidity for success.
The key distinction between the two strategies is that swing trading seeks to capture larger price movements over a longer period, while scalping targets rapid, small price fluctuations within a very short time frame.