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Difference Between Forex Day Trading And Forex Swing Trading

Forex Trading offers two very different kinds of trading opportunities.  One is Forex Day Trading.  The other is Forex Swing Trading.  Many people use one or the other of these.  There are a number of ways these are different from each other.  One is the time frame used.


Profit is measured in Pips.  The amount of potential profit on each of these is different.  Day Trading uses a lower time frame.  Often Day Traders use charts showing the action on 30 minutes, 15 minutes or 5 minutes.  Swing Traders usually use hour charts, 1 hour, 4 hours or 8 hours.  The market will move a larger distance in an hour than in 5 minutes, therefore Swing Traders can make more pips on their charts.
Before taking a trade, most traders will set an amount of pips they are willing to risk or lose.  Day Traders risk fewer pips than Swing Traders.  Day Traders use smaller time frames and have less profit opportunities.  However, Day Traders can make more trades than Swing Traders because of the smaller time frames.


The amount of time the trader is in a trade is different also.  Typically, 30 minutes to 4 hours is the time a Forex Day Trader is in a trade, again because of the shorter time period.  In swing trading, a trader may be in a trade from 4 hours to a day or longer. Both traders used Technical Analysis to find and leave trades.  The more information a market has, the more accurate it is.  Therefore, the results of technical analysis in Swing Trading are more reliable than the smaller time periods used by Day Traders.


Both traders have specialized indicators that offer technical information.  A favorite of Day Traders are Support levels and Resistance levels shown by Daily Pivot Points.  Each person is more comfortable using one of these methods.  Take the time to discover which one works best for you.

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One Response to “Difference Between Forex Day Trading And Forex Swing Trading”

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