Day trading vs Swing trading which is more profitable?
Summary
TLDRThis video explores various trading styles, focusing on scalping, day trading, and swing trading within the context of perpetual futures contracts. It emphasizes the importance of understanding market sentiment and timing for profitability. The presenter shares live trade examples, discusses using EMAs for take profit targets, and highlights the benefits of swing trading for long-term gains and reduced stress. Additionally, the video mentions strategies like support and resistance, as well as chart patterns, as effective tools for successful trading.
Takeaways
- 🔍 The video discusses different trading styles, focusing on profitability and suitability based on the time available for trading.
- 🏆 Scalping is identified as a trading style where quick profits are made within short time frames, such as minutes, by taking advantage of small price movements.
- 📊 Scalping requires constant attention to the market and understanding of the current sentiment, which may not be suitable for those with limited time due to other commitments.
- 📈 Day trading involves buying and selling assets within the same day, often using strategies based on support and resistance levels.
- 💡 Day trading can transition into swing trading if a trade is profitable and the market sentiment suggests holding the position for a longer period.
- 🚀 Swing trading is highlighted as potentially the most profitable style, where trades are held for more than a day, even up to a week or month, depending on market conditions.
- 💰 The speaker emphasizes the importance of hitting take profits and managing stop losses effectively to secure profits and avoid unnecessary losses.
- 📉 The video mentions the use of EMAs (Exponential Moving Averages) as a technical analysis tool for setting take profit targets and identifying market trends.
- 📝 The speaker suggests that swing trading can be less stressful and more profitable, allowing traders to hold positions overnight without worry, indicating good trading psychology.
- 📚 Reference is made to additional resources such as a digital course on YouTube and an e-book on chart patterns available on Discord for further learning and improvement in trading strategies.
- 🌐 The video concludes with an invitation to join a Discord server for trading signals, ideas, and community support, and mentions a promotional offer for new traders.
Q & A
What is the main topic of the video?
-The main topic of the video is to explore different types of trading styles, their profitability, and which one a trader should use based on the time they have available.
What is scalping in trading?
-Scalping is a trading strategy where a trader takes advantage of small price movements in a very short period of time, such as within minutes, by buying and selling securities like futures contracts.
What is the significance of the 99 EMA in the context of the video?
-The 99 EMA (Exponential Moving Average) is used as a take profit target in the video, as the price often bounces off or trades above it, indicating a potential point to close a position for profit.
What is the difference between scalping and day trading according to the video?
-Scalping focuses on very short-term price movements within minutes, while day trading involves buying and selling assets within the same day, often using strategies based on support and resistance levels.
What is the recommended approach when taking a profit in scalping?
-The recommended approach is to focus on hitting take profits as often as possible and managing stop losses effectively, requiring the trader to be actively monitoring the market within the specific time frame.
How does the video define swing trading?
-Swing trading, as defined in the video, is a style of trading where trades are held for a longer period than a day, potentially for weeks or even months, depending on market conditions and asset being traded.
What are the benefits of swing trading mentioned in the video?
-The benefits of swing trading mentioned include its profitability, reduced stress as trades are held for longer periods, and the ability to capitalize on larger market movements.
What is the importance of trading psychology in the video?
-Trading psychology is important as it indicates a trader's confidence and comfort level in the market, which is crucial for making informed decisions and managing trades effectively.
What strategies are suggested for swing trading in the video?
-The video suggests using EMA crossovers and chart patterns, especially on larger time frames like one hour, four hours, or daily, as profitable strategies for swing trading.
How can new traders learn more about trading strategies and get support?
-New traders can learn more about trading strategies through a free digital course available on YouTube and can get support by joining the video creator's Discord server, where trading signals, ideas, and other resources are shared.
Outlines
📈 Introduction to Trading Styles and Scalping Techniques
The video begins by introducing various trading styles, focusing on their profitability and suitability based on the time available for trading. The first style discussed is scalping, which involves taking advantage of short-term price movements in assets such as futures, forex, and cryptocurrencies. The speaker demonstrates a live trade on a one-minute time frame, using a 99 EMA as a take profit target. Scalping requires constant attention to the market and an understanding of the market sentiment within a specific time frame, which may not be suitable for everyone, especially those with full-time jobs.
🚀 Day Trading and Swing Trading Strategies
The script moves on to day trading, which involves buying and selling assets within the same day, often using support and resistance levels or other strategies. The speaker emphasizes the importance of treating day trades as potential swing trades, especially when the market moves in favor. A dedicated video on this topic is promised. Swing trading is highlighted as the most profitable style for the speaker, involving holding trades for longer periods, even months. The benefits of swing trading include reduced stress and the ability to capitalize on significant market movements. The speaker also mentions trading strategies involving EMA crossovers and chart patterns, which are effective for swing trading.
🌐 Community Resources and Trading Support
The final paragraph discusses the community resources available for traders, including a Discord server that shares trading signals, ideas, airdrops, and other valuable information. The speaker encourages viewers to join the server using a link provided in the video description, which also offers significant bonuses for new traders. The video concludes with a call to action for viewers to like, subscribe, and comment, celebrating the channel's recent milestone of 10,000 subscribers and inviting participation in the growing trading community.
Mindmap
Keywords
💡Scalping
💡Perpetual Futures Contracts
💡EMA (Exponential Moving Average)
💡Day Trading
💡Support and Resistance
💡Stop Loss
💡Swing Trading
💡Leverage
💡CPI (Consumer Price Index)
💡Chart Patterns
💡Discord
Highlights
The video discusses different types of trading styles and their profitability.
Scalping is defined as taking advantage of price movements in very short time frames, such as minutes.
Scalping can be applied to various assets including cryptocurrencies, Forex, and commodities.
A live trade example demonstrates scalping on a one-minute time frame.
The 99 EMA is used as a take profit target in scalping strategies.
Scalping requires constant attention to the market and understanding of market sentiment.
Day trading involves buying and selling assets within the same day, often using support and resistance strategies.
Day trading can transition into swing trading if a profitable entry is identified and held for potential larger gains.
Swing trading is described as the most profitable style, holding trades for more than a day up to weeks or months.
Swing trading is less stressful and can lead to better trading psychology.
EMA crossovers are a strategy used in swing trading for identifying market movements.
Chart patterns are a profitable method for swing trading, especially on larger time frames.
The video offers a free digital course on YouTube for new futures traders.
Joining the Discord server provides access to trading signals, ideas, and airdrops.
The video promotes a link for up to $30,000 in World Cup bonuses for trading with a specific broker.
The channel has reached 10,000 subscribers and encourages community engagement through likes, subscriptions, and comments.
Transcripts
in this video we're looking at different
types of trading Styles and which one is
more profitable than the others and most
importantly which one should you be
using based on the time that you have at
your disposal first off we want to start
off with scalping so when you're
scalping you're basically taking
advantage of buying and selling the
security in this case selling Futures
contracts as you know that we're trading
on Perpetual Futures contracts but even
if you're trading other assets such as
dogs and Forex and also cryptocurrencies
as you guys know that's what we're
currently trading here but we'll be
diving into more Commodities later in
the future when you're scalping you're
basically just taking you know advantage
of that price movement in a very very
short period of time so this can be
maybe in the next 10 minutes in the next
20 minutes 30 minutes for example but
when you start to go into you know
holding trade for 30 minutes maybe
that's when you actually falling into
day trading here so that's what we're
going to be looking at in this video the
different types of trading Styles and
which one is more profitable and also
which one should you be using so
basically that's what scalping is you're
just taking advantage of the price
movement most cases in a very very lower
time frame I can also show you here a
live trade as you can see here I'm
buying a Futures Contract and I'm
actually trading this on about one
minute time frame so basically every
candle within this chart represents one
minute as you can see now we've got our
trade active and what we're predicting
is that the market is going to move high
with high momentum but obviously
anythings can happen on the market but
that's what we're predicting here in a
very short period of time obviously like
I said everything here is on a one
minute time frame so let's actually look
at what is sculpting in real life and
you can see here we've got a 99 EMA and
we can use this EMA as sort of like our
take profit targets because in most
cases the price will come bounce off on
the 99 amas or even trade above it a
little bit so that's what we gonna be
using here so that's why we're taking
profit at these levels here from there
we can just see how the market moves as
the market is actually moving towards
our take profit there which is their
target so that's what we're talking
about when we're actually scalping we're
focusing in a very short period of time
on the market obviously we can still do
this even though you're trading on a
five minute time frame or even 10
minutes 20 minutes it doesn't really
matter but obviously the smaller the
time frame the better the data that is
presented to you then you can make
informed decisions based on the data
that you see before you so now you can
see that the market is pushing beyond
the 99 inmates and now the 99 em8 is
sort of like the support and obviously
I'm predicting that the market is going
to go higher to take our profit on top
so that's what is sculpting and you can
see every candle here represents one
minute on the chart so as you can see
now the market is moving up to hit our
take profit and that's the most
important thing when you're trading you
need to be hitting those take profits as
often as possible then hitting your stop
losses but obviously this type of
trading requires you to always be on the
chart and understand the current
sentiment of the Market within that
specific period and that may not you
know apply for those of you who have
your nine to five job for example which
then leads us to our next topic here
which is day trading when you're
actually day trading you're buying and
selling the asset within that day so
maybe you may buy the Futures Contract
maybe one hour later and sell it so in
most cases when I'm day trading I'm
actually trading on support and
resistance or using different types of
you know strategies as I've been showing
you guys in this Channel and what I want
to do when I'm day trading I will trade
and then place my trade mostly when I'm
trading support and resistance I'll
probably just make a video on support
and resistance alone because it's a very
very important video for you guys to
know especially if you're getting
started in the world of trading but when
I'm day trading here I'll actually place
my short position depending on whether
I'm going long or going short so once
you have your trade activated as you can
see here now your trade is actually on
profits in most cases you can treat your
day trading as swing trading
um obviously depending on the sentiment
of the market sometimes you know you
that you actually got a very very good
entry and you don't want to close that
trade immediately so what I do in that
case as you can see here I've got a
trade that is on profit and what I'm
going to do here is you can see that I
have a stop loss
which is just below my Enterprise which
means that whenever the market is coming
to touch this point here that's when my
stop loss is going to be activated
however I'm going to be closing this
trade on a profit so I'm making money so
once you have a scenario like this
you've got a guaranteed way of making
money once you're trading on the Futures
Market but you also want to make sure
that you don't you know put this stop
loss so quickly because in most cases
the market will actually come and retest
your entry point before actually taking
the direction that you had initially
predicted so for that reason you want to
wait maybe a couple of hours for you to
actually do this strategy but I will
make a dedicated video also on this so
make sure that you subscribe and turn on
all post notifications but as you can
see here we've got our Enterprise and we
have our stop loss below our Enterprise
which means we've got a guaranteed
profit on this trade so we can now trade
this trade as a swing trade because now
we know for sure that we will not lose
on this trade which is very important
when you're trading you want to be
closing your trades in profit in most
cases that really post your level of
confidence as a Trader as well and it
actually makes you very very comfortable
on the market so that's how I actually
do my day trading in most cases I'll
just day trade on a support or
resistance with you know a strategy that
I'm gonna wait for the markets to move
in my favor then I'll put my stop loss
just
um it's break even or add a little bit
of a profit and then put my Target price
at a specific defined price on the
market depending also on the sentiment
this doesn't work all the time like I
said you need to allow the markets to
breed so you don't have to put the stop
loss immediately otherwise it's just
gonna go and touch it almost all the
time and you're actually going to lose
out on that potential profit as you
would have been better off by closing
the trade on that profit whether two
percent or three percent or four percent
or five percent because like I said the
markets fluctuate up and down all the
time so it will most likely come and
touch these levels
all right now let's go ahead and talk
about swing trading now swing trading
for me is probably the most profitable
style of trading because this is where
you actually holding you know trades for
a period of longer than a day maybe a
week even a month depending on what
assets you're trading and what's the
sentiment of that market you'll recall
that here we're trading Perpetual
Futures Contract which means these are
contracts that do not expire which means
we can hold this position for as long as
possible for example if you cut the
bottom in Bitcoin and the Bitcoin start
Rising that's when you can hold the
position for a period of longer than a
year for example obviously their trading
fees for holding that contract but the
profit of holding that contract will
outweigh the fees that you're actually
paying on those contracts so swing
trading is when you're holding a trade
for a period of more than a day maybe a
week it really depends on when you
actually caught that trade so this is my
most profitable style of trading and
it's actually less stressful as well
because you're holding trades for a
period of what a day or two days which
means you have to go to bed there's a
saying that once you actually trade and
have the ability to go to bed without
you know worrying about your trade
that's when you know that you're a good
Trader and at this stage you probably
have a good trading psychology as well
so swing trading is where the money is
for me and you'll recall that in our
previous video we spoke about some
trading strategies that you can actually
use whenever you're trading the Futures
markets on that video I showed you guys
that when these two EMA cross here the
markets take a very very good 10. now I
took this trade as you can see here this
is about two percent but I closed it
immediately after that because of this
support and resistance over here and
over here you can see that this strategy
works so this is also a strategy that
you can apply whenever you're doing
swing trading because if you cut the top
here this is adoa by the way you can see
the market is moving by six percent and
this is within the probably the last
three days or so so you could be holding
this trade for you know for a period of
a day or even a week but obviously now
there's a CPI data coming out on the
12th of December so that's going to be
in four days and maybe that's when you
want to be out of the markets because
the markets tend to be then volatile but
other strategies that you can actually
use whenever you're trading Futures
Market is going to be chart patterns if
you recall that in class 8 we already
covered chart patterns not only that on
our Discord there's a digital book which
is an e-book that you can download
directly from our Discord and learn how
to trade using chat patterns so using
chat patterns especially on a one hour
four hour time frame even a daily time
frame tend to be the most profitable way
of Swing trading for me because that's
when you actually get the most moves on
the market so you're not just scalping
or taking advantage of a very small
price movement however you actually
waiting and taking advantage as the
market is dropping and that's when you
actually get you know profit as you can
see here we actually have a move that is
about six to seven percent drop again if
you're trading this with 10x leverage
you have made 70 of your initial margin
which is really really good so if you're
new to Futures Trading just know that we
have a digital course that you can get
here on YouTube which is absolutely for
free and if you want to be part of our
Discord just make sure that you sign up
using one of our Brokers to trade with
then you can use your uid to get into
our Discord server which is absolutely
free on our Discord server we share
trading signals and also trading ideas
airdrop and all the good stuff that you
want as a cryptocurrency Trader so while
you use the link in the description of
this video it actually gives you up to
thirty thousand dollars the biggest
bonuses in this crypto space thirty
thousand dollars in World Cup bonuses
whenever you're trading word buy bit
find the link in the description of this
video I hope that you found this video
very very helpful if it was make sure
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subscribe to this Channel and also leave
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