🔄 Scalping vs. Swing Trading: Understanding the Risks ⚖️
Scalping:
Very low overnight risk since trades last only minutes and close the same day 🔒. But overall risk is high because of frequent trades, heavy use of leverage, and the pressure of making fast decisions ⚡. Without solid risk management, losses can quickly add up 📉.
Swing Trading:
Trades are held for days or weeks, so there’s overnight risk from sudden market moves while you’re away 🌙⚠️. However, fewer trades mean less stress, lower fees, and moderate risk compared to scalping 🤝.
In short:
Scalping risks stem mostly from trading errors and speed, while swing trading risks come from holding positions longer.
Which style fits you better? 😊