THIS style is called “day trading” because securities are bought and sold within the same day.
- Day traders typically buy and sell securities within the same day, often multiple times per day.
- Swing trading is also fast-paced but not as often as day traders.
- Capital requirements vary for day traders and swing traders depending on whether you trade stocks, forex, or futures.
- Day trading may be a good choice if you want higher profit potential; swing trading if you want a less stress.
- Simply put, the main difference between swing and day trading is the time frame.
- Day traders work with a limited time frame whereas the swing traders work with a longer time frames.
- Swing trading is better if the trader is patient. Like you.
- Both day trading and swing trading require time, but day trading takes up much more time. Day traders usually trade for at least two hours per day. Add time to read news updates, analyze charts and business metrics and that adds another three to four hours at your computer.
- What type of trading is most profitable? Day Trading because of frequency, time, and effort.
- Do day traders get taxed more? Yes. Capital gains are short-term and are taxed at higher regular tax brackets (currently 39.6% max) while long-term investments held for more than a year are taxed at a lower capital gains rate (currently 20% max rate).
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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation.
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He retired after 50 years of defending taxpayers audited by the IRS, EDD, BOE and other governmental agencies. He published a book on “How to Avoid or Survive IRS Audits” that’s available at Amazon. Readers may email tax questions to firstname.lastname@example.org.