What is the difference between End of Day trading and Swing trading? These two terms confuse me.
Thanks
Hi @xetatrader!
Day trading is another short term trading style, but unlike scalping, you are typically only taking one trade a day and closing it out when the day is over.
On the other hand, Swing trading refers to the medium-term trading style that is used by forex traders who try to profit from price swings. Swing traders identify a possible trend and then hold the trade(s) for a period of time, from a minimum of two days to several weeks.
To know more about their differences, please feel free to check out these lessons:
Hope this helps!
Penelopip
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Thank you Penelope, but I was talking about End of Day vs Swing trading not Day trading vs Swing
Well explained
Sorry excuse me, if you’re referring to @Penelopip answer it’s not explained yet. In some articles I see EOD as holding a trade for days while in others it’s holding for a day only. Which confused me because isn’t that same thing as swing trading or Day trading, why does it have a different name?
Hi again, @xetatrader!
I apologize for misunderstanding your question.
To clarify, End of Day Trading is another medium-term trading style wherein traders, as the name suggests, analyze and execute their trades closer to the market close, or even after the market closes.
Such restriction is not necessarily needed for swing trading. Although it’s also a medium-term trading style, many swing traders maximize the market hours to watch, analyze, and open positions.
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Thank you @Penelopip for your explanation.
So does this mean that end of day is also swing trading?
Also do end of day traders close their trades at the end of the next day or hold for several days?
Thanks
I think you’re talking about more of a strategy than a style. There are 4 types of traders: scalpers, day traders, swing and position traders. EOD is just part of a strategy.
@MattyMoney Okay, I understand but, do End of Day traders close their trades at the end of the next day or hold over days like a swing trade?
It would depend on what the daily candle tells them. If they’re looking to go short and the daily candle closes as a bearish engulfing (for example), then that would be a good sign to go short the next day.
If you’re in a short trade and the candle closes strong, with a long wick at the bottom (one example), this could be a sign that the trend has weakened and my be changing direction. Therefore you might close it.
@MattyMoney so they hold trades over days?
Yes, unless there’s a signal to exit.
Again, there are no set rules, it’s all about the individual’s strategy.
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Thank you, I appreciate your time @MattyMoney @Penelopip
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Day trading means making many trades in one day. On the other hand, swing trading involves looking for profits through change in price values over many days > than 1.
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Day trading is about making dozens of trades in a single day. But swing trading is about identifying swings in stocks, commodities, and currencies.
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In simple words, end of day trading can be the opposite of day trading. EOD traders usually trade when the market closes. On the other hand, swing trading involves looking at technical analysis and the traders keep looking at opportunities to trade.
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Day trading and swing trading both have been working for different traders. Based on your trading style, you can choose the one for you.
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End of day trading is when traders decide to trade when the market closes. It is very different from day trading and a lot of focus is on technical analysis. It opens a lot of opportunities for traders.
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The main difference between the end of day trading and swing trading is the time frame. Day traders work with a short and limited time frame, whereas the swing traders work with a much longer time frame.
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