Day trading vs Swing trading which is more profitable?

Summary

This 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

00:00

📈 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.

05:02

🚀 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.

10:02

🌐 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.

Keywords

💡Scalping

Scalping is a trading strategy where traders aim to profit from small price movements by making numerous trades in a single day. It is characterized by short-term transactions, often within minutes. In the video, the concept of scalping is introduced as a way to capitalize on quick price fluctuations, with the script mentioning trading on a one-minute time frame to illustrate the strategy.

💡Perpetual Futures Contracts

Perpetual futures contracts are a type of derivative that does not have an expiration date, allowing traders to hold positions indefinitely. The video discusses trading on perpetual futures contracts, emphasizing their utility in long-term trading strategies like swing trading, where the lack of an expiration date can be advantageous for holding positions for extended periods.

💡EMA (Exponential Moving Average)

The Exponential Moving Average (EMA) is a type of moving average that places a greater weight and significance on the most recent prices of a security. In the video, the 99 EMA is used as a reference point for take profit levels, indicating that the price often bounces off or trades above this average, which is crucial for traders using scalping strategies.

💡Day Trading

Day trading involves buying and selling financial instruments within the same trading day, with all positions closed before the market closes. The video script explains day trading as a strategy that can be based on support and resistance levels or other strategies, and it contrasts with scalping by having a longer time frame, typically from minutes to hours.

💡Support and Resistance

Support and resistance are levels on a price chart where the price of an asset tends to stop falling (support) or rising (resistance). In the context of the video, support and resistance are used as key levels for entering and exiting trades in day trading, providing potential areas for profits and risk management.

💡Stop Loss

A stop loss is an order placed with a broker to sell a security when it reaches a certain price. It is designed to limit an investor's loss on a position. The video mentions setting a stop loss just below the entry point to secure profits and avoid closing trades prematurely due to market retesting of entry points.

💡Swing Trading

Swing trading is a strategy where positions are held for several days to weeks, aiming to capture gains in price movements larger than those targeted by scalpers or day traders. The video highlights swing trading as potentially the most profitable style due to the ability to capture larger market moves over extended periods.

💡Leverage

Leverage in trading refers to the use of borrowed capital to increase the potential return of an investment. The script from the video explains how leverage can amplify profits, especially in swing trading, where a 6-7% market move with 10x leverage could yield a 60-70% return on margin.

💡CPI (Consumer Price Index)

The Consumer Price Index is a measure that examines the weighted average of prices of a basket of consumer goods and services, often used to track inflation. The video mentions an upcoming CPI data release as an event that could cause market volatility, indicating the importance of economic data in influencing trading decisions.

💡Chart Patterns

Chart patterns are graphical representations on a price chart that can suggest future price movements. The video script refers to chart patterns as a strategy for swing trading, especially when used on larger time frames like the one-hour, four-hour, or daily charts, to identify significant market trends and potential trade opportunities.

💡Discord

Discord is a communication platform often used by traders to share information, strategies, and signals. In the video, the presenter mentions a Discord server where they share trading signals and ideas, indicating the community aspect of trading and the value of collective knowledge and insights.

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

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