How is Swing Trading different from Scalping?
The core differences between swing trading and scalping are, respectively, involved with time frames and trading styles. The main differences between swing trading and scalping relate to time frames and trading style.
Swing Trading: This is where positions are held for many days or a couple of weeks. It takes advantage of the wider swings in price that occur within the market. Of these, medium-term trends are targeted by traders using technical and fundamental analysis as a potpourri.
On the other hand, scalping presupposes a much smaller time frame when positions are held for minutes or even less. Scalpers try to take advantage of very small price movements; they conduct a lot of trades during the day and often depend only on technical analysis and market liquidity.
The important distinction between the two strategies is that while swing trading aims at catching higher price movement within a longer period, scalp trading targets very small and quick changes in price within a very short time frame.
Swing Trading: This is where positions are held for many days or a couple of weeks. It takes advantage of the wider swings in price that occur within the market. Of these, medium-term trends are targeted by traders using technical and fundamental analysis as a potpourri.
On the other hand, scalping presupposes a much smaller time frame when positions are held for minutes or even less. Scalpers try to take advantage of very small price movements; they conduct a lot of trades during the day and often depend only on technical analysis and market liquidity.
The important distinction between the two strategies is that while swing trading aims at catching higher price movement within a longer period, scalp trading targets very small and quick changes in price within a very short time frame.