Day trading is the inverse of the slow and steady approach of buy-and-hold investing. With day trading, you buy and sell investments quickly — in less than a day, hence the name — in the hopes of scoring a profit off of price fluctuations in the market.

This may sound exciting; there is certainly more action involved than the waiting game that is long-term investing. But there is also substantial risk.

What is day trading?

With day trading, you are buying and selling securities, such as stocks , all within the course of a day, often multiple times a day. The hope here is to turn a profit off of short-term movements in prices that arise due to volatility in the market.

Put another way, day trading is effectively placing “numerous bets on short-term price moves in securities,” said R

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