Day Trading (Intraday) vs. Swing Trading: Major Differences

We have already covered the basic concepts related to different trading styles viz. day trading, swing trading, and positional trading. In this write-up let us take a glance at the differences between intraday and swing trading. Understanding these differences will help you choose the best strategy for yourself.

Before proceeding to the differences, let us make it clear that you can use a combination of more than one trading and investment strategy to generate better results from the stock market. Sticking to only one style anyways is not a good idea for retail traders unless they are masters of that particular trading style.

Differences between Day Trading and Swing Trading

Basis of Difference	Day Trading (Intraday)	Swing Trading
Time Frame	Buying and selling of stocks takes place within a day.	Buying and selling of stocks is done within a few days. The period normally varies between 5 to 15 days.
Basis of Analysis	Day traders have to convert their position i.e. sell the bought shares (buy the sold shares in case of short trading) so they need to keep a close watch on the price movement of the shares in their portfolio and watchlist. They need to dedicate quite a time to share market.	The strategy of swing trading relies equally on technical analysis and fundamental analysis. This means a swing trader needs to dedicate some time to understand the financial position of the company of their choice. And, they also have to give some time to see the price movement of that particular share in the share market. Though they do not need to be as active during the market hours as the day traders.
Tools of Analysis	Day traders typically rely on price and volume charts. Charts like 30 minutes, 15 minutes, and 5 minutes are used to make buying and selling decisions. A scalper may normally use the 1-minute chart to find patterns and make buying and selling decisions.	Basic financial information of the company is used in addition to price and volume charts. Swing traders normally rely on day charts for observing price performance. They may also use weekly charts for better decision making but any chart above the weekly chart and below the daily chart is not used by swing traders.
Bondage of time-frame	If a trader chooses the option of day trading / intraday while taking a position they are bound to convert that position before the market closes. If they fail to do so their positions would be automatically converted at the closing price.	Not bound to sell their shares at a particular time. It is only they who know whether their goal is to do swing trading, positional trading, or remain invested for years.

Unlike investment, trading is a quick business. Both intraday and swing trading are the ways to make quick profits from the market.