Swing trading versus scalping. Which is better, which is more profitable, and which is more suitable for passing prop firm challenges and trading with brokers in general.
Swing traders aim to capture moves over days or weeks. Scalpers focus on small trades inside minutes or seconds. For this episode I brought data on how profitable each group actually is.
Key takeaways
Across brokers and prop firms the general figure is 70 to 90 percent of traders losing money.
The estimated success rate for swing traders is 10 to 20 percent, on the higher side of the range.
Scalpers come in at only 5 to 10 percent, roughly half the success rate of swing traders.
Swing traders work off higher timeframes with more data, so their levels and larger trends tend to be more accurate.
Scalpers pay more in spreads and commissions and carry very high stress from rapid, repeated decisions.
Swing trading is easier and puts the odds in your favour, so scalping is better left until you are more advanced.
What the data actually says
In general, 70 to 90 percent of traders lose money. That varies broker to broker and firm to firm, but it is a big number either way.
The estimated success rate for swing traders is 10 to 20 percent, which is already on the higher side. Scalpers sit at only 5 to 10 percent.
So on average swing traders are almost double the success rate of scalpers. Of course it depends on the person, and you can find a losing swing trader and a very successful scalper. However, on average, swing trading comes out ahead.
“Swing traders are almost double in terms of their success rate.”
Why swing trading tends to win
Swing traders focus on higher timeframes, so they have more time to analyse and they are less stressed. When you are less stressed you make better decisions.
Higher timeframes also carry more data, and more data means more accuracy on the larger market trends. You do your analysis, put your trade on, then step away for a couple of days and just monitor it.
In practice that is a lot easier. The trade offs are a slower pace and lower profits in short bursts, with days where nothing triggers. Over the long term, though, the results are generally better.
Why scalping is the hard road
Scalpers can capitalise on big moves and be there when they happen. That upside comes with very high stress, because they have to make decisions rapidly and trade many times a day.
They also pay more. More spreads and more commissions than a swing trader, simply from the volume of trades.
The bar is high. You need to be fast and ultra disciplined to stay on top of your game and avoid bad decisions. Scalping is probably the most difficult style out there, and it only rewards a small percentage of traders.
Which one should you choose
Both can be successful with the right approach. Overall, though, swing trading offers a higher success rate thanks to its slower pace and focus on larger trends.
If you are new, put the odds in your favour. Start with swing trading, or day trading, so you have an easier time while you build experience and confidence.
That said, the traders who do scalp well do it very well and make a lot of profit. It is just not for everyone, and it suits a higher level. Get advanced first, then scalp if you want to.
Once you know your style, compare prop firms on Propvator and pick one whose rules and conditions suit how you trade.