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Position Trading vs. Swing Trading: Differences and Similarities


Position trading and swing trading are two prominent trading strategies that you can use to access the markets. Both methods provide market opportunities as you trade, but only if you understand their approaches. Here, we’ll look at some similarities and differences and help you determine which can be more useful for your situation.

Position Trading vs. Swing Trading

Position trading is an option for you if:

Swing trading is an option for you if:

Similarities Between Position Trading and Swing Trading

Position trading and swing trading have some things in common. Here are a few of the similarities. Both Trading Styles Have a Strong Bias Toward Fundamental Analysis. Both swing and position traders rely on fundamental analysis at some point to make decisions about going long or short. Whether you’re a swing or position trader, you’ll understand from conducting fundamental analysis of the assets you’d like to trade. Take, for example, trading stocks of major companies.

You can look at fundamental indicators like:

You can also look at other fundamental drivers like inflation, government policy, and political stability, which can affect the markets.

That also means you’ll get into fewer positions during these periods as you attempt to create trading opportunities from any position you’re holding. While you may monitor charts and price movements, your trades will have a long-term bias.

Differences Between Position Trading and Swing Trading

There are several differences between position trading and swing trading. Here is the difference between the two trading styles.

Choosing Between Position Trading and Swing Trading

Both position trading and swing trading have advantages and disadvantages. So, how do you know which trading style is ideal for you? Here are considerations to make when choosing a trading style.

Both position and swing trading offer opportunities. Depending on your risk appetite, you may prefer one strategy over the other.

Start Trading with Vantage

Access markets including forex, commodities, indices, shares/stocks and more, at low cost. Start trading by opening a live account here, or practice trading with virtual currency with a demo account. You can also sign up for our free, weekly webinars that will break down the current markets as well as discuss potential trade set ups for the week.

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