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01. Basic

What is Day Trading?

Day Trading is a speculative trading style that involves the opening and closing of a position within the same day.

Quick example: If you open a new position at 10AM and close it by 2PM on the same day, you have completed a day trade. If you were to close that same position the following morning, it would no longer be considered a day trade.

Day traders, or active traders, typically use technical analysis and a trading strategy to try and make profits in a short period of time and will often use margin to increase buying power.

A successful day trader doesn’t just pick any stock and try to trade it. There has to be some kind of strategy involved with rules and money management parameters.

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