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  1. Beginner
    Early Stages for Beginners
    8 Topics
  2. Forex Terminology
    11 Topics
  3. Margin & Leverage
    2 Topics
  4. Personal Psychology Questions
    2 Topics
  5. Psychology for Beginners
    7 Topics
  6. Intermediate
    Identifying Scams
    2 Topics
  7. Brokers for Beginners
    5 Topics
  8. Technical Analysis
    13 Topics
  9. Market Structure
    5 Topics
  10. Completion
    Risk Management for Beginners
    8 Topics
  11. Fundamental Analysis
    9 Topics
  12. Advanced
    Using Indicators
    6 Topics
  13. Technical Analysis (Part 2)
    8 Topics

Scalping vs. Intraday Trading vs. Swing Trading

(3 Types of Trading)

Finding out which type of trader you are depends on the trading style you fall under. In this market, there are 3 styles of trading. One or a combination of two may be best suited for you and your personality. You may be someone who is quick to react in seconds or minutes, someone who only wants to be in a trade for a couple of hours or someone who prefers a couple of days. Here, we’ll talk about the three different styles of trading. The main difference between the three is how it operates on different time frames. The higher the time frame, the longer a trader holds his or her position.

Scalping

Scalpers are traders who want to get in and out of the market fast. Trading volatile pairs are best for scalpers as they look to profit off of the lower time frames for 10-30 pips. If you are a scalper, you are looking to hold your trade for a few seconds or minutes, but no longer than an hour, if even that. Scalpers monitor their charts for the duration of the trade unlike the other two types of traders. There’s risk in any type of trading, but to make a profit, the lot size would have to be higher because lots profit off of small price movements.

A scalper tends to place more trades than an intraday and swing trader to increase their profits since they catch the smaller moves in the market. There are many different ways to scalp in the market, just as there are different intraday and swing trading strategies. If you lack the patience to hold a trade for hours/days and you spot opportunities quickly, this style of trading may be for you.

Intraday

Intraday traders are looking to hold for a few hours and close before the end of the trading day. They look to catch anywhere from 30-100 pips a day. The best part about this style of trading is that it stems from both scalping and swing trading. Intraday traders look for trends and confirmation on an hourly time frame and entries on a lower time frame like the 15 minute time frame. When price comes to your interest point but you’re looking to hold for a bigger pip gain, you will need to be able to make quick decisions. This requires more patience than scalping because you have to wait for the best trading opportunity. There are many intraday strategies, but if you trade level to level, you may fall between intraday and swing trading.

Swing

Swing traders hold their trades for days and up to a few weeks – sometimes even a few months. They look at the higher time frames like the daily and weekly, trying to spot swing highs and swing lows. They also pay close attention to Fundamentals, as it can cause huge shifts in the market. This style of trading is great for someone with other obligations because it is not required for the trade to be monitored as often. This also requires extreme discipline and patience knowing that the market HAS to reverse on, let’s say, week 2. Then it must reverse on Week 4 to create higher highs/higher lows or lower highs/lower lows. It can take days for a trading opportunity to present itself, and longer for it to hit its profit target, but the profit target can be significant for only analyzing a chart a few times, placing a trade, and leaving it alone for a few weeks/months, as opposed to constantly being in and out of a trade.