Intraday, Swing, and Positional Trading

• Intraday Trading:Trading around the same day.
• Swing Trading:Holding position for more than a day and around 7-15 days
• Positional Trading:Long term trading, holding stocks for weeks or months

Example:Intraday trading is like running to get a transport, swing trading is running at an agreeable speed, while positional trading is arranging a long excursion.

Aspect	Intraday Trading	Swing Trading	Positional Trading
Definition	Trading around the same day	Holding position for more than a day and around 7-15 days	Long term trading, holding stocks for weeks or months
Timeframe	Hours,minutes or seconds around the same day.	Few days to some weeks.	Few weeks to some months or may be longer.
Objective	To earn from intraday price movements.	To earn from short-term to medium-term price movements.	To recored important patterns over a longer period.
Risk Level	High risk because of rapid market movements and short timeframes.	Moderate risk because stocks are hold for more than a day.	Lower risk but it may requires patience and bigger investment.
Technical Analysis	Relies more on intraday graphs, trends, and indicators.	Relies on weekly charts, using momentum indicators.	Relies more on fundamental analysis, along with long-term technical patterns.
Capital Requirement	Low, because stocks are sold by the end of the day.	Moderate, because stocks are held for extended periods.	Higher, because of extended holding periods and probable margin requirements.
Best For	Traders who have enough time to analyze the market actively all day.	Traders who needs flexibility and moderate time commitment.	Investors targetting for long-term growth with less frequent trading.

Trading vs. Investing

Trading: It focuses on short-term gain by majorly using technical analysis to analyse the stock.

Investing: Includes holding stock as long as possible, permitting them to develop consistently over the Long-Term.

Example:Trading resembles flipping houses for easy gains, while Investing resembles purchasing an investment property for progressing pay.

Aspect	Trading	Investing
Definition	Buying and selling financial instruments frequently to profit from short-term price fluctuations.	Buying and holding financial instruments for the long term to build wealth gradually over time.
Time Horizon	Short-term, ranging from seconds to months.	Long-term, ranging from years to decades.
Objective	To generate quick profits from market volatility.	To accumulate wealth through long-term appreciation and dividends.
Risk Level	High, due to market volatility and frequent transactions.	Lower, as it focuses on long-term growth and stable investments.
Approach	Relies heavily on technical analysis and market timing.	Relies primarily on fundamental analysis and long-term trends.
Capital Requirement	Lower, but frequent transactions require active monitoring and management.	Higher, as it often involves larger capital investments for long-term growth.
Best For	Individuals with time, expertise, and tolerance for market volatility.	Individuals looking for a steady, passive approach to growing wealth.