Academy · Stage 1
Trading styles
Scalping, day trading, swing trading and position trading compared: time required, costs, and who each suits.
A trading style is defined by how long you hold and how often you trade. Choose it around your life, not around what sounds exciting. A full-time job and a scalping strategy do not mix.
Scalping
Hold time: seconds to minutes.
Trades per day: dozens.
Targets: a few pips or ticks.
Requires: very tight spreads, fast execution, full attention, and the temperament to take many small losses.
Reality: transaction costs are the enemy. Most retail scalpers pay more in spread than they make. Works best in the London–New York overlap on major pairs and index futures.
Day trading
Hold time: minutes to hours, always closed before the session ends.
Trades per day: a few.
Targets: intraday swings, often built around the open, the data release, or a breakout.
Requires: several hours of screen time daily, and a strict routine.
Reality: no overnight risk, which is the main attraction. Still cost-sensitive. Most day traders eventually specialise in one or two markets and one or two time windows.
Swing trading
Hold time: days to a few weeks.
Trades per week: a few.
Targets: a leg of a trend, from one support level to the next resistance.
Requires: an hour or so a day for analysis, decisions made on daily and four-hour charts.
Reality: the most practical style for people with jobs. Overnight financing on CFDs matters. Exposed to weekend gaps and scheduled events, so the calendar is part of the plan.
Position trading
Hold time: weeks to months.
Trades per month: one or two.
Targets: major trends driven by interest rate cycles, earnings cycles or macro themes.
Requires: understanding of fundamentals as much as charts; tolerance for large open swings.
Reality: closest to investing. On leveraged products the financing cost can exceed the return, so this style is usually traded in cash shares, ETFs or futures.
Choosing
Start with swing trading on a demo account. It gives you time to think, exposes you to the calendar, and teaches you how trends actually unfold.
Common mistakes
Choosing a style for excitement rather than schedule.
Switching styles after a losing week.
Scalping on a platform with slow execution or wide spreads.
Swing trading CFDs without accounting for financing over long holds.
Day trading while at work.
RISK DISCLAIMER
Praevis publishes education and market commentary. Nothing here is investment advice. Trading forex, stocks and CFDs carries a high level of risk and may not be suitable for all investors.