What is day trading?

Day trading is a short-term strategy where people buy and sell shares within the same day to try and profit from small price movements. Instead of holding shares for months or years, day traded may only hold them for hours or even minutes.

Day trading requires constant attention to the market, fast decision making, and a willingness to take on high risk. Prices move quickly, losees ccan build as fast as gains. Professional daay traders often use advanced tools, data, and strategies. Many of which rely on leverage, which can magnify both profits and losses.

For beginners, it is important to know that day trading is very different from long term investing. While it may look exciting, the majority of day traders lose money, especially after fees and taces are considered. Long term investing in quality companies or ETFs has historically been a much more reliable way to build wealth.