Glossary

From A to Z all the terms you need to skip the jargon and get started!

Day trading

Day trading is a fast-paced investment strategy where traders buy and sell financial instruments, such as stocks, options, or currencies, within the same trading day. ⚡

The goal is to profit from short-term price movements, and positions are usually closed before the market closes, avoiding overnight risk.

For example, a day trader might buy shares of a tech company in the morning after positive news is released and sell them later in the day when the stock price has risen.

Fun fact: Day trading has become increasingly popular with the rise of online trading platforms and mobile apps. 📱 However, it's a high-risk strategy that requires strong discipline, quick decision-making, and a thorough understanding of financial markets. Many day traders fail to generate consistent profits and experience significant losses.