 What's going on everybody it's Stas here and in today's video I'm going to be breaking down swing trading versus day trading these two heavily talked about trading strategies in the stock market my personal experiences with them what I personally like better and giving some pros and cons of both of these strategies so you the viewers out there can hopefully find out what may better suit you with your particular life circumstances and your day to day tasks so if you enjoyed this video feel free to go down below hit that like button consider subscribing if you want to see further content for me and join our StrifeSmart discord group chat there's over 800 people in there active investors and traders that is linked down below in the description box and let's get right into the video guys so to give a brief definition of what swing trading is and what day trading is so we can get a better understanding of what these are right swing trading is when you buy a stock one day and you hold it overnight hold it two weeks hold it two months right it's pretty much you buy and you don't sell that same day you hold it for a specified period of time whatever that time period may be and day trading on the other side is you buy a stock one day and you sell it that same day right let's say a stock is running up during earnings or something like that and you want to hop in very quickly get some intraday action in that stock that's considered a day trade right but let's say you're swinging a stock for a week let's say a dip you want to buy into that dip and ride the reversal upwards that's considered a swing trade if you hold it for a week or more right so that's just a brief breakdown of what swing trading is and what day trading is so me personally i consider myself more of a swing trader and that's honestly because that's what i started with believe it or not when i first got into trading in the stock market i wasn't one of these guys that you know i did dabble into penny stocks here and there but i wasn't one of these guys that jumped in headfirst and day traded every single day starting off the bat right i actually came into it looking at swing trading and during the time period that i actually started trading i was a full-time student and i also had a job at this time so for me it seemed more sustainable to swing trade because with day trading you have to be on your computer looking at charts keeping up with things in real time for an extended period of time you know it could be an hour two hours three hours and i didn't really have that time during the day right because i was at my day job i was a student full time as well i had a lot of things going on but i resorted to swing trading which you can actually look at charts for 10 15 20 minutes keep up with news that takes about 20 30 minutes and you can actually enter into positions profit mitigate risk and of course you have to know what you're doing at this point in time but you can actually pull it off with only 30 45 minutes an hour per day of doing research and studying charts so i figured that was more sustainable for me but then as the years went obviously i scaled up my swing trading strategy and then i started to dabble more into day trading especially as i went in full-time with what i'm doing right now which again is e-commerce trading right swing trading and day trading and this whole youtube channel and brand that i'm trying to build here so as i got deeper and deeper into day trading i realized how different it was from swing trading so for example you know sometimes when i was day trading i'd make a certain amount of money in one day that took me a week two weeks maybe even three weeks to make on a position swing trading right so you can make a lot more money day trading right that's what i've noticed but the thing is you can also lose a lot more money because when you're hopping into these volatile stocks during earnings periods you know these penny stocks and just volatile low cap stocks in general you can catch up swings that give you 10 15 20 percent but you can also be caught in a 5 10 whole if you're not mitigating your risk correctly so through my experiences of day trading and swing trading in the stock market i've been able to compile a list of pros and cons of each that i want to share with you guys right now so let's get right into it so the swing trading pro one of the biggest pros is that you don't have to be locked at your computer for multiple hours you can literally buy a position set a stop loss and then go on with your day another interesting thing you can do is you can actually set an oco bracket order which stands for one cancels the other and i know some brokerages don't have this i don't think robin hood um m1 finance some of the discount brokerages they don't have this setting but if you use fidelity td ameritrade and i'm sure some of the other ones you'll be able to set these types of orders and what they are is again a one cancels the others so you can set a limit sell order and a stop loss so pretty much that means let's say you hop into a position at thirty two dollars and let's say that stock you want to sell it at thirty five dollars so you can set a limit sell at thirty five dollars so if that stock were to hit that you'd get the profit right and let's say you set a stop loss at thirty one dollars so let's say it's sold off from 32 to 31 that's where you want to cut your loss that's how you mitigate your risk once it hits that it'll sell all your shares so you won't lose a lot of money right and once one order hits the other one cancels and this is very good for those people that want to be passive that work a day job they can't get to a computer they can buy a stock set an oco order and if the stop hits it cancels the limit sell if you sell your shares the limit sell hits it cancels the stop so that's a very awesome thing about swing trading and also you can do this literally around the world if you're from the united states i've literally done this myself if you have a united states brokerage account you can go to other countries i was just in mexico a couple of weeks ago i was trading there while you're watching this video i'm in greece so you can be in different countries swing trading in the stock market so another pro about swing trading is that you can treat this as a side hustle you can do this alongside of your day job your sales career your business whatever it may be and let's say you're young and you're saving up money from birthdays from christmas from holidays whatever it may be and you start swing trading you could just keep doing it guys and build up from there and have a side source of income so that's another pro that i really like about swing trading and let's get into the cons guys so one of the main cons about swing trading is that sometimes positions might take longer to play out than you initially intended and by that i mean when you're hopping into a trade initially you kind of have a time target of when you want to exit that position based off of previous patterns so let's say for example i wanted to hop into johnson and johnson at 130 dollars and based off previous patterns last time it dipped it took two weeks to recover to 140 dollars so i figured okay in two weeks i want to exit at 140 dollars well sometimes it won't take that same amount of time period to get to that 140 sell target or whatever sell target you have sometimes instead of two weeks that you intended to that you wanted to that your goal is to get to that you know target sometimes it might take four weeks five weeks a month you know two months and that leads to your capital being tied up in this trade longer than you want it to and this might lead to you missing opportunities on some other stocks and this has really led to some problems with me some you know issues with me over the past couple of years throughout my trading career but as you accumulate more cash the idea is you know as you save more money through your job your business whatever from day trading you'll have more cash to play with and if you're tied into a swing trade that's taking a bit longer than expected you could take some of that extra cash you're saving right and you could put that into some other opportunities that you're seeing forming so you don't miss out on those opportunities right so another con about swing trading is as you're following these trends to hop in sometimes they can end up faking you out so you can end up hopping into this trend at a point where you think it's a good time to hop in and then all of a sudden it reverses so this is a point in time where you need to be mitigating your risk you cannot swing trade without having an OCO bracket set up without having a stop loss set up at least because you know if that trend does reverse on you which happens sometimes guys trust me i have experience in this you know you need to be able to cut your losses and preserve your capital because if you're losing more than two three four five percent this can really have a damper on your account affect your returns and really discourage you from continuing trading in the stock market especially swing trading in the stock market so now that we talked about swing trading let's talk about some pros and cons about day trading so i'd say the biggest pro about day trading is how much return you can actually make the potential returns are very very high like we said before you know when you're hopping into some of these penny stocks these low cap you know low float stocks maybe some leveraged ETFs whatever it may be you know you have the potential to make five ten fifteen percent fifty percent i've seen stocks and leveraged ETFs guys some velocity volatility ETFs go up 40 50 percent in a single day their returns are absolutely ridiculous they're stupid right you can make a ton of money day trading in the stock market another pro to day trading is you can have a lot of time in the rest of your day if you day trade in the morning you trade for an hour an hour and a half two hours you know there's been a lot of times in my life where i've day traded i've made whether it's a couple percentage points you know a couple of hundred dollars in the morning it took me an hour two hours and i'm like okay what am i going to do for the rest of the day right that is literally what can happen some days and a lot of people like that time you know the time freedom of day trading that you can work an hour two hours make your trades make your money and then have the rest of the day to yourself pretty much to work on other businesses work on side hustles you know read educate yourself you know exercise whatever it may be so those are two pros through my experience of day trading in the stock market so some of the cons about day trading are you have to be on your computer for a couple of hours throughout the day whether it's an hour two hours three hours however long you're trading you pretty much have to be glued to this screen because most of the time if you're day trading a lot of what you're day trading it's going to be moving up and down you need to catch the moves you need to lock in profits and you need to cut your losses and mitigate risk this involves a lot of attention to the computer screen and a lot of people consider that stressful emotional and a con right and while you're looking at the screen guys a lot of emotions are running through your head right you're like should i sell now should i buy more should i you know take the profits you know these emotions they play with you which is why when you're trading especially day trading you need to handle your emotions and control those emotions because they can negatively dictate your decisions they can lead you to panic sell they can lead you to hopping into a trade when it's overbought you can have fear of missing out also known as FOMO there are a lot of different emotions that could come from day trading in the stock market a lot of beginners out there they think you could just come in buy a stock and then profit over the day you can profit over the next hour it's a piece of cake right but once they see their money you know if you have a $5,000 position once you start to see that money dip into the red i swear it's like you're in a different mindset because before you came in you didn't even understand and realize what it's like to have your money the hard earned money that you've worked for moving down and then once you're in that position it's like you're very stressful you're emotional and your mind starts racing your heart starts thumping and some people you know love the thrill of actually day trading and i'm one of those people that i am a thrill seeker i'll be honest with you all which is why i'm in this crazy crazy crazy field of trading in the stock market right i do like thrill seeking events and this is one of them in my opinion but for those that can't handle it it can really crush them and they can lose a lot of money and another con about day trading is that the losses could be huge right we talked about the profits can be big in the pros section but the losses can actually be massive i've actually lost a lot of money day trading in my day you know and a lot of the times when you're day trading and you experience a loss it leads to you bag holding that position at least people that are more beginners in the markets they don't cut their losses if they're down five ten percent on a day trade they're like i might as well just hold this now i might as well just wait for the recovery and that ends up losing them a lot of money right they bag hold the stock never comes back the etf never comes back and then they have to cut their losses at a way lower price than if they would have just cut their losses right away at five ten percent where it initially was and i've experienced this in the past i actually have a video dedicated to this but just to sum it up very quickly i was in a leverage gtf a couple of years ago i got him i bag held it i lost 40 percent of my money in the next couple of weeks like that so i have experienced guys and trust me i'm speaking from real experience so i'm going to wrap up the video here guys if you enjoyed it if you found value in this video feel free to go down below and hit that like button consider subscribing if you want to see further content from me and go down below join our discord group chat and our facebook group i promise you all will find a ton of value in there i'll catch you all in the next video thanks again for watching i really do appreciate it peace out