The difference between a Swing Trader and Scalper
Trading the sports markets comes in many variations but one of the things that tend to split traders is the difference between Swing Trading and Scalping.
Up until recently, I would have classed myself purely as a swing trader but since taking the bfscalping course I now have the advantage of being able to do both.
So, what are the main differences between a Swing Trader & scalper?
As is often the case one type of trader could easily be classed as both on certain trades but this how I like to think of the differences.
Swing Trading is when you are looking for a significant change in the price that will allow you to trade out for at least 10 ticks (debatable) or more.
You will be using strategies that play out over a longer time (normally) and that could be a whole race or match or even several months to a year as in the winner of the f1 season.
It will normally be a strategy that has been worked out and only implemented when everything falls into place.
Swing traders may not be concerned about the market going against them for a short while, expecting their strategy to work out in the longer term...
...But they will have in place a maximum stop loss figure which will be executed if it is reached.
A Swing trader will have a lot of different strategies they can use but only when circumstances present themselves.
This kind of trader normally needs to be more methodical and like to do research and except that they may not get that many trades, so they have to make the most of each one they do get.
A swing trade will have an entry, exit and profit plan for each trade and look for ways to maximise the profit they can make.
They will also look to protect any profit already achieved if they get the chance.
This type of trader will also need to trust in their research and experience and accept that although they may not win every time overtime their wins will make a lot more than their losses.
Scalping, on the other hand, is normally done quickly and is based or what the markets are doing at that time.
Scalpers are looking for 1 or 2 tick movements and will get out quickly if the trade doesn't go the way there were expecting.
Scalpers can do multiple trades on the same event and even on more than one selection in the same event.
Scalpers tend to have a setup which will show them immediately what the market is doing from second to second.
They will be studying the prices intensely looking for the exact moment to execute a trade which can sometimes mean a back and lay trade at the same time.
You have to be able to concentrate and learn to read the short-term markets as a scalper and you have to be able to accept a loss immediately it happens and gets out.
Well, of course, there is no winner but which one you choose will depend on which you feel will suit your personality the best.
I had real trouble with scalping when I first tried it because I would want to wait and see what happened which is totally wrong attitude to have when scalping.
If the market goes against you…”You get out!”
Whereas with Swing Trading you sometimes accept the market may go against you for a while but still has a good chance of coming back to you allowing you to make a profit.
For horse racing swing trading strategies, I use the TTS Plus software.
Its history information makes it easy to pinpoint potential profitable scenarios.
When I wanted to learn to scalp it seemed to me the best thing to do was learn from someone who already is successful at it which is why I chose the bfscalper course from Stuart.
Anyway that’s the way I see it 😊
Until next time