What is day trading?
Day Trading Explained
Day trading is a style of trading where positions are opened and closed within the same day to avoid holding trades overnight.
It can be used across different markets, including stocks, forex, crypto, commodities, indices, and ETFs.
Characteristics
- Hold positions for minutes to hours
- Close trades within the same day
- Focus on short-term price movements
- Requires active monitoring
Day Trading Strategies
- Scalping – Many small profits from tiny price moves
- Momentum – Trade assets moving strongly in one direction
- Breakout – Enter when price breaks support or resistance
- Reversal – Trade against extreme short-term moves
Requirements for Success
- Solid understanding of technical analysis
- Strict risk management rules
- Emotional discipline
- Sufficient time to monitor markets
- Reliable internet connection
Practice in Trading Game
Trading Game lets you practice day trading strategies using real market prices without risking real money.
You can open and close simulated trades within the same day across different asset classes.
Note (Real Trading): In some countries, day trading stocks is subject to special rules. For example, in the U.S., the Pattern Day Trader rule requires a $25,000 minimum account balance for frequent stock day trading. This does not apply to paper trading or to all markets.
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