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Which is more profitable scalping or swing trading?

These are some of the differences.

Scalping

Scalping is basically the same as swing trading. One trader makes 2 orders with the same buy and sell orders to cover some short time frame. Once they have covered the period, the trader then sells the securities at some higher bid price and buys the same securities at some lower bid price at some point thereafter.

For example, at 5:00pm on February 17th, the price of AAPL was sitting around $9.10. When the trader takes a sell at 6:30pm, he can cover the last 10min at $7.50 because he has already sold the securities at around $10.00.

So if that trader has covered the last 10min, he can then sell the securities at $10.00. The next trader is ready to buy when he takes the call when the price stays above $10. This is known as a covered call position.


With that scenario, the above trader would then take the same profit every 30min, so this trader could lose money every 30min for the entire month. However, the trader can make a profit by taking a profit every month. He could sell a few days if he makes a larger profit than his average loss for the month. As we saw above with the AAPL trader, some traders are willing to sell at some points in the day. That means that some traders can get short term profits by taking long term positions. We will see an example of how this happens later.

Swapping

Swap trading is basically the same as scalping because one trader makes 2 orders with the same buy and sell orders to cover some short time frame. Once they have covered the period, the trader then sells the securities at some higher bid price and buys the same securities at some lower bid price at some point thereafter.

For example, at 5:00pm on February 17th, the price of AAPL was sitting around $10.10. When the trader takes a buy at 6:30pm, he can cover the last 10min the same way as the switcher trades. But then, he takes a buy at 6:00pm at an even higher bid price after taking a sell. So the price of AAPL will stay over $10.00 at the end of this period because the swapper traded with a higher bid price to cover it.

The above trader can now take a profit by taking a profit