Investors and traders are always puzzled in choosing between swing trading and intraday trading. Both seem to be popular ways, but they are pretty different in terms of approach, timeframes, and the quantum of risk a trader can tolerate. Here, we learn the fundamental differences, pros, and cons of both techniques, which will help you to choose the better one that fits your style of trading.

What is Swing Trading?

Swing trading is a medium-term approach in which traders keep positions for many days or even weeks to profit from price movements. It is less hectic than intraday trading since constant monitoring may not be required.

Swing Trading Advantages:

• Flexibility in Timing: Because the trade lasts from a few days up to a few weeks, you need not constantly monitor your account every minute, hence giving more flexibility to people who have other commitments.
• Larger Gains: Swing traders try to ride larger price swings, which can net much higher returns compared to quick intraday moves. 
• Fewer Trades: Fewer transactions result in lower trading costs for traders using the best online trading app or free trading app with much-reduced fees. 

Disadvantages of Swing Trading:

• Requires Lots of Patience: Swing trading requires you to be patient as it may take days and even weeks to get the desired returns, which is very irritating for traders who look forward to quick gains.
• Longer Capital Lock-up: Your money is tied up in trades for a longer period, restricting your ability to show liquidity for other better opportunities.

What is Intraday Trading?

Intraday trading means buying & selling shares within one trading session with your trading account. Traders try to make a profit from short-term movements in prices, so they need a fast, real-time strategy to execute various trades within a day.

Advantages of Intraday Trading:

• No Overnight Risk: Because all positions get closed before the end of the trading day, you avoid overnight risks when markets change while you sleep.
• Quick Profits: Intraday trading can offer swift returns, appealing to those who seek immediate gains.
• Chances to Profit from Volatility: Daily price fluctuations can provide ample opportunities for making profits with the help of a reliable share trading app through which one can manage these real-time transactions. 

Cons of Intraday Trading: 

• Time-Consuming: The traders in intraday need to keep a close eye on their trades throughout the day, and in that sense, it takes much time and attention as well.
• Smaller Gains Per Trade: Because it is within the same day, the price fluctuation will be pretty small, so gains per trade are small unless a large amount of capital is used.

Which Trading Style is Right for You?

The choice between swing and intraday trading would depend on one’s risk appetite, time availability, and investment objectives. If one does not like being very actively involved, swing trading allows much more flexibility and is less stressful. On the other hand, intraday trading would be more suitable if one enjoys the thrills of fast action and has sufficient time to devote to monitoring the market.

Conclusion:

Intraday trading and swing trading both have their set of disadvantages and advantages. While swing trading can give larger rewards over a greater time, intraday trading has quick and frequent opportunities. Whichever you prefer, ensure you have the right share trading app or totally free trading app to make your decision-making easy and your trading frictionless.