Apiary Fund Blog

Scalping vs Swing Trading

[fa icon="calendar"] Aug 2, 2019 6:06:00 AM / by Lukas MacMacKen

Scalping and swing trading are very common ways to make your profits while trading. Each has advantages over the other and they have their disadvantages, too. No matter the type of trader you are, the other trading style still must be recognized as it can move markets in its own way and can catch movements that the other side would not catch. So, whether you trade like Shawn Lucas and scalp or if you do a longer term swing trade approach, knowing the difference and what they can add to your trading is important if you're adapting to the new strategy.

Scalping: a large series of short term trade for small amount of pips. While this is an extremely loose definition, the idea stands. As the preferred method of trading utilized by Shawn Lucas, scalping offers the ability for hundreds to thousands of trades a day. While these trades may only make five or less pips, with the quantity pushed through a day, scalping can be extremely profitable. The thing that comes with scalping is the time consumption. Pushing through half a thousand trades a day, even if they are less than two minutes each and you execute 10 trades at a time, that is about two hours of trading where you must consistently be in front of the computer. In that trading time, there will also be times where you won’t be pushing through the same amount of trades, they will last longer than thought, and there is also the possibility of loss. Scalping offers a huge influx of small profits to increase your balance in a relatively small amount of time.

Swing trade: Projectional market analysis resulting in trades ranging from one day to multiple weeks. Swing trades will look more so into technical analysis and use indicators and long term trends. The main advantage the swing traders find over scalping is the ability to set and “forget.” With the time table that swing trades utilizes, you are able to enter the trade, sign off the computer and go to the store, return home and not be half way through the trade. There are much fewer trades going through than with scalping, but with the analysis and length of the trade, the profit per trade is astronomically larger. Breakouts, head and shoulders, momentum bursts, and many other chart patterns are key in the swing trading world and offer trader top qualifying entries.

No matter the type of trading you find yourself partaking in, knowing what other options there are can help. If you are a swing trader, scalps can be intermediate trades to make minute profits while the longer term swing trades are taking place. If you are a scalper, looking at the longer term swing direction can help to extend the smaller profits and track movements in the longer haul. This type of trading with multilevel and timeframe analysis is what Shawn Lucas uses in his trading and how his trading created the capital to create the Apiary Fund and let individuals learn to trade and start trading without having to front any funds.

Topics: Trading Strategy, shawn lucas, scalping, swing trading

Lukas MacMacKen

Written by Lukas MacMacKen

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