What is swing trading?
17 August, 2021
What is a CFD?
17 August, 2021

What is Day Trading?

Day Trading is a short-term trading style. Its main characteristic is that all positions are opened and closed on the same day, that is, overnight operations are not held.

Unlike Scalping, in Day Trading there are usually a smaller number of operations (in some cases it can be only 2 or 3 operations per day).

Day Traders usually take positions early in the day and can spend long periods of time in front of the screen during the day performing analysis, executing and monitoring their trades.

Characteristics of Day Trading

Trades open and close on the same day.

Style used by those who have time to monitor the market several hours a day.

It is usually operated in time frames between 15 minutes and 1 hour.

Commissions and Spread are relevant when setting profit-taking targets.

Fundamental Analysis is used as a complement to the analysis of positions.

Stop Loss levels higher than those used in Scalping but lower than those used in Swing Trading are applied.

How do you know if Day Trading is for you?

Day Trading may be a style for you if you have no problem with the following:

  • Open and close your operations on the same day.
  • Have time to analyze and monitor the market during the day.

If you like Day Trading we recommend some books that may interest you:

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