DAY TRADING VS SWING TRADING

DAY TRADING

All positions closed within the same trading day.

PROS

• No overnight risk
• More opportunities
• Fast feedback

CONS

• Time intensive
• Higher stress
• More transaction costs

SWING TRADING

Positions held for days to weeks.

PROS

• Less time
• Lower stress
• More analysis time

CONS

• Overnight risk
• Less opportunities
• Delayed feedback

FOR PROP FIRMS

Most prop firms prefer day trading due to daily drawdown rules. Swing trading can work but requires careful risk management.

Disclosure: Affiliate links.