Day- vs. Swing-Trading

Comparison, decision aids, risk rules, setups, and checklists — concise and practical.

Reading time ~ 12–18 min
Practical

Introduction

Day trading: KPIs
Key characteristics at a glance.
Holding time
Minutes–Hours
Frequency
high
R/Trade
0.25–1%
Intraday risk
Stop
0.3–1.2 × ATR(5m)

Definitions

Day
Intraday; positions are closed the same day.
1–15m entry, 30–60m/4h context. Focus: opening drive, VWAP, trend pullbacks.
Swing
Days/weeks; overnight and gap risk.
4h/1D setup, 1h/4h timing. Focus: breakout–retest, trend continuation, HTF zones.

Direct Comparison

Day advantages
  • No overnight risk
  • Fast feedback
Day drawbacks
  • Time‑intensive
  • Psychological pressure
Swing advantages
  • Less screen time
  • Larger moves
Swing drawbacks
  • Gap risk
  • Fewer trades

Risk Management

Rules & formulas
Conservative risk, clear stops, clean execution.

R: fixed account risk per trade (e.g., 0.5–1%).

Position size: size = (equity × risk%) / stop

Stops: Day 0.3–1.2 × ATR(5m) — Swing 1–3 × ATR(1D)

Setups

Opening Range Break
Breakout of the 5–15m range.
Stop beyond the range; partials at 1–2R; trail the rest.
VWAP Reversion
Mean reversion to VWAP.
Rejection/trigger back toward VWAP.

Checklists

Day session
From pre‑open to close.
Event filter active
Daily risk set (e.g., 2R)
Primary setups selected
Swing plan
Before entry and during holding period.
Regime/sector aligned
Size via ATR/stop
Calendar (earnings/macro) checked

FAQ