Day trading involves opening and closing positions within the same trading day. The goal is to profit from short-term price movements while avoiding overnight exposure.
Key Characteristics
- ⏰ Positions held minutes to hours
- 🔄 Multiple trades per day
- 📊 Technical analysis focused
- 💰 Small but frequent profits
- 🚫 No overnight positions (no swap fees)
Common Day Trading Strategies
- Trend Following — Trade in the direction of the intraday trend
- Range Trading — Buy support, sell resistance in sideways markets
- Breakout Trading — Enter when price breaks key levels
- Scalping — Ultra-short trades for small profits
Requirements
- ⏰ 2-4 hours of focused screen time
- 💵 Sufficient capital ($5,000+ recommended)
- 📱 Fast, reliable internet and platform
- 🧠 Emotional discipline and risk management
- 📓 Trading journal for performance tracking
Risks
⚠️ High transaction costs (many trades) ⚠️ Emotional burnout ⚠️ Requires significant time commitment ⚠️ Most day traders lose money (studies show 70-90%)