Day Trading refers to market positions which are held only a short time; typically the trader opens and closes a position the same day but positions can be held for a period of time as well. The position can be either long (buying outright) or short ("borrowing" shares, then offering to sell at a certain price). A day trader is looking to take advantage of volatility during the trading day, and reduce "overnight risk" caused by events (such as a bad earnings surprise) that might happen after the markets are closed.
How to day trade, and the top 10 day trading secrets for beginners.
The concept got a bad reputation in the 1990’s when many beginners began to day trade, jumping onto the new online trading platforms without applying tested stock trading strategies. They thought they could “go to work” in their pajamas and make a fortune in stock trades with very little knowledge or effort. This proved not to be the case.
Yet day trading is not all that complicated once you learn a simple, rules-based strategy for anticipating market moves, such as that taught at Online Trading Academy.