Before we get into scalp vs swing trades and why scalps are better, we're going to break it down to what each is. A scalp trade is when traders/investors make numerous profitable trades on small price changes, but done quickly. You're basically going in and then right out. A swing trade is when traders/investors when you hold open a trade for a day or more hoping it'll be a profitable trade.
Scalp and swing trades are two of the most common short term trading methods. With scalps you're making smaller but quicker trades, and with swing trades you're making bigger but longer trades. Both require concentration, but scalps need a higher concentration level than swings. Swing trades are higher risk when you're trading whereas scalps have lower risk.
Swing trades are great for those who are beginning with trading to those who are advanced with trading. The level of stress between both trades differ, scalps are a higher stress level than swings which is moderate. Reason being is that scalps require extreme more precise strategies while swings require moderate strategic planning and are less on the “predictive” side than scalps are. However, each trader is different when it comes to stress levels and the trades that they are doing and the strategies that they put in place.
When it comes to decision making, scalps you need to be able to make quick decisions whereas swings you can take a bit more time with it. Scalps you need to be monitoring the trade constantly and swings you monitor the trade every so often. When you're looking at charts, you'll be looking at the 1-minute and 5-minute charts for scalps and swings you're looking at a variety of charts daily, weekly, and monthly.
Scalps are awesome because it's more predictable, it's lower risk, and it's less volatile because you're in the market for a shorter period of time. Swings are the complete opposite, it's longer exposure to risk and to the changes in the market. The flawless in and out strategy by SupremeCommerce Training will help you to predict your scalps a whole lot better. You'll have a higher win rate than swings with in and out strategy.
Trading in general is just another great way to build a foundational wealth. It's also one of the best ways to compound wealth compared to banks. Trading is an analytical process that requires studying, experience and a lot of patience, but the results that come with it are amazing. Just remember with every trade that you make, use risk management.
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WRITTEN BY: Leslie Lazaro