Active trading is a strategy where investors frequently buy and sell financial instruments, such as stocks or options, to capitalize on short-term market movements. This approach requires a keen understanding of market trends and often involves using technical analysis to make quick decisions. Active traders typically hold positions for a short duration, ranging from minutes to days, rather than long-term investing. Traders may use various tools and platforms to execute their trades efficiently, often relying on real-time data and charts. While active trading can lead to significant profits, it also carries higher risks and requires a substantial commitment of time and resources to monitor the markets closely.