Day trading is a trading strategy that involves buying and selling financial instruments within the same trading day. Traders aim to capitalize on small price movements, often using leverage to increase potential returns. This fast-paced approach requires a solid understanding of market trends and technical analysis.
Successful day traders typically rely on real-time data and sophisticated trading platforms to execute their strategies. They must be disciplined and able to manage risk effectively, as the potential for significant losses is high. Tools like charts and indicators are essential for making informed decisions in this competitive environment.