About
There was a time years ago when the only people able to trade actively in the stock market were those working for large financial institutions, brokerages, and trading houses. The arrival of online trading, along with instantaneous dissemination of news, have leveled the playing—or should we say trading—field. The easy-to-use trading apps and 0% commissions of services like Robinhood, TD Ameritrade, and Charles Schwab have made it easier than ever for retail investors to attempt to trade like the pros.
Day trading can turn into a lucrative career (as long as you do it properly). But it can be challenging for novices—especially those who don’t have a well-planned strategy. And be aware that even the most seasoned day traders can hit rough patches and experience losses.
So, what exactly is day trading, and how does it work?
KEY TAKEAWAYS
- Day traders buy and sell stocks or other assets during the trading day in order to profit from the rapid fluctuations in prices.
- Day trading employs a wide variety of techniques and strategies to capitalize on these perceived market inefficiencies.
- Day trading is often informed by technical analysis of price movements and requires a high degree of self-discipline and objectivity.