When Forex Trading is referred, there are mainly two kinds of trading schools that are very common - Forex Swing Trading and Forex Day Trading

Like I mentioned Both styles are very widely accepted amond trading community. However apart from being used on different time frames, there are some unique differences in both of these forms of trading. Let us go through some of these differences-

1. Average Pips that can be made per Trade -

Day Trading is carried out on lower time frames such as 5 min chart, 15 min chart or 30 min chart etc, the amount of pips that can be made per trade are typically not as high since the day trades last only for few min to few hours. However, the swing trades on the other hand are carried out on bigger time frames (1 hr chart, 4 hr forex chart , 8 hr chart etc.) ad they sometimes last for as much as few days.

2. Risk Needed Per trade -

Since the Day trading is done on lower time frame and lower profits can be made, the amount of pips risked per day trade is also very less as compared to Swing Trade. In day trade, the risk is in tune of 15 to 30 pips depending on the time frame being used to place the trade. Swing trade on the other hand requires risk ranging from40 pips to as high as 80pips.

3. Duration of Trades -

A typical Day Trade lasts somewhere between 30 min. to 4 hrs depending on the Time frame of a trade. So, a trade on 5 min chart will last for lower duration as compared to one on 15 min. chart

Same is truw for swing trade. However a swing trade lasts between 4 hrs to 1 or 2 days depending on the timeframe.

Since the day trades don't last for more than few hours, the amount of concentration needed for day trading is significantly higher than needed for swing trading. If you are late by just 15 min in identifying a trade setup, you may want to consider passing the entire trade.

4. Application of Technical Analysis - Both Forex Day Trading and Swing Trading are typically carried out using Technical Analysis. However it is said that the higher the time frame, the more accurate the technical analysis becomes. Due to this, technical analysis is more accurate in Swing Trading than in Day Trading.

For both form of trading there are some specialized technical indicators. For e.g. Use of Daily Pivot Points is used in Day trading to identify Support and Resistance levels.

When choosing a particular trading style, it should be seen which form of trading are you more comfortable with and how much are you ready to risk in each trade.

The above points can help you choose a form of forex trading.