Back to basics: What is Day Trading?
Since this seems to be a popular series, let's go over day trading. If you've ever heard about "day trading" and imagined people glued to their screens all day, frantically buying and selling stocks, you're not too far off.
But there’s a lot more to it than just constant action. Day trading is a style of trading where people buy and sell financial instruments—like stocks, options, or currencies—all within the same day, aiming to profit from small price movements. Here’s a breakdown of what day trading is, why people do it, and how it works.
The Basics: In and Out in a Day
Day trading is defined by a simple rule: no positions are held overnight. Whatever you buy, you sell by the end of the trading day. Whether it's stocks, options, forex, or even crypto, the goal is to capitalize on small price changes within a single day. Unlike long-term investors who hold assets for months or years, day traders are only looking at what the market will do in the next few minutes or hours.
Why Day Trading?
The allure of day trading is pretty obvious, potentially quick profits and day trading offers a thrill that you don’t get from slower, more conservative investing
