I have a lot of trader friends and they often ask me why I prefer day trading over swing trading despite that its real time data is expensive and the commissions are quite high as compared to swing trading. I just smile and remember the time when I also used to think the same. There was a time when day trading was a new concept and people did not know much about it. Now-a-days day trading has become a common trend in online stock trading.

I personally know many traders who switched swing trading and moved to day trading. This is because day trading provides a lot of benefits to them. Before becoming a day trader, I also thought it’s too risky and it’s not easy to make money through it but now I enjoy being a day trader. I am going to list here the reasons why day trading entices me and despite my friends opinion why I still like to stick to this method of stock trading.

1. When I was a swing trader, the fear of being away from the market always remained in the back of my mind. If ever I was sick or had another urgent piece of work, this fear always hovered over my mind. Day trading provides me mental satisfaction and I always sleep well at night because I am always in 100% cash. My positions are closed when the session ends with the day and if ever I feel taking a day off, I feel completely satisfied that I have 100% cash in my hands.
2. In the times when I feel good mentally and physically I have the potential to trade with out taking any day off. In those days, the returns I earn from day trading are much greater. Once you refine your system, you can earn 4 times of the account equity. Also, this does not come without risk but my years of experience in it have taught me to handle the risk and make most out of this trading.
3. Many position traders don’t use margins because they have to pay interest on its use. In day trading, mostly brokers leave your cash account in interest bearing account and when you have 100% cash in your account, you earn money just like you earn if you have a saving account. In this way, you can earn extra money through it. I recently earned 4 percent interest and I am really happy to quote this figure here.
4. I have found day trading very less risky as compared to swing trading. Because all the positions are closed at the day end, I don’t have any money at stake for over night surprises. And whatever little risk, I have to face I am in a better potion to manage it because of the over night gaps.