Glossary · Risk & Strategy

Day trading / Swing trading

Holding positions within a day vs. days to weeks.

Day trading closes positions before the market session ends, aiming to profit from intraday moves and avoid overnight risk. Swing trading holds for several days to a few weeks, trying to capture shorter trends or swings within a larger move.

Both styles demand rules, costs awareness, and emotional control. Day trading is typically more time-intensive and fee-sensitive; swing trading allows more breathing room but still needs planned risk. Neither is required to invest long term.

Example

A day trader buys at the open and exits by the close the same day. A swing trader buys Monday’s breakout and holds through the week until a target or stop is hit.

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