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Daveatt
Nov 23, 2022 1:46 PM

What Are The Pros And Cons of Intraday vs Swing Trading Education

Bitcoin / TetherUSBinance

Description

Hello traders,

There is not such a good or bad timeframe.

Like cooking, everything depends on how you use the ingredients for your meals.

Intraday timeframes

Pros

  • Earlier entries
  • Earlier exits => losers are smaller compared to losers with SWING trades
  • You make your daily goals earlier
  • With Intraday trading, we're not impacted by contracts expiration, rollover, over-weekend, overnight fees
  • It's rarely boring (especially with indices trading)
  • Leverage isn't needed
  • Perfect for beginners or small capital


Cons

  • More in/out entries => you have to enter, exit, enter, exit until the real move happen
  • You have to be more reactive and accurate when taking a position or exiting.


Swing timeframes

Pros

  • More time to react and prepare
  • We don't need to be too accurate with our entries and exits
  • You're less impacted by news/events/rumours/tweets - They have a real visible impact on intraday but generally don't change a thing for the swing trend


Cons

  • Bigger drawdown by design
  • Forces to hold trades over multiple days/weeks.
    In a range, we pay a lot in funding/rollover fees before the real move happens.
    Being double digits percent down because of fees isn't pleasant.

  • Big capital required to afford to lose a few percentages sometimes with those trading fees

  • 1 click takes 5 seconds.
    Then you wait and wait and wait and wait, and then look on Twitter for ideas to invalidate your entries.
    When your favorite guru shares a contrary setup, you follow his/her call and wreck yourself.

    You really need patience with SWING trades.
    If the patience for you is an issue, I'd stick with Intraday.


Have a great day
Dave
Comments
TradingView
Daveatt
@TradingView, thank you TV team:)
Cenotaph
intraday perfect for beginners 😂 is this a joke? if anything beginners should avoid intra day trading chasing all kinds of setups and paying more fees to the broker and being more susceptible to market conditions such as liquidity and news.
Daveatt
@Cenotaph,
1) "chasing all kinds of setups" => not what I said, they have to stick with 1 strategy only
2) "paying more fees to the broker" => is that always true though? with swing trades, we tend to take bigger positions implying much bigger fees
Fees are a percentage of the position size
rasaqsolomon54
@Daveatt the truth is intraday is bad for beginners and you know that, please stop misleading noobs… we all know chart patterns and candlestick patterns are not as strong as on higher tfs, that’s why when a beginner is to be taught they start with 4h and daily mostly. Even professionals make more money on higher TFs than lower TFs
Daveatt
@rasaqsolomon54, because professional have more capital
donnis
@rasaqsolomon54 Maybe you're right, maybe you're wrong. Everyone has thier choice
Daveatt
@donnis, well said
rasaqsolomon54
@donnis yeah that’s true I’m not disputing that but recommending intraday trading for beginners, that doesn’t make any sense and you know that too
Daveatt
@rasaqsolomon54, makes sense to me
I made many traders very profitable making them starting with low timeframes and small position sizes
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