Day trading
Also called: day trader, pattern day trader
Day trading is buying and selling within the same day to profit from short price moves, closing every position before the market closes.
In the US, a pattern day trader (four or more day trades in five business days in a margin account) must keep at least $25,000 in the account.
Studies consistently find most day traders lose money after costs, which is why practising first with a simulator is common advice.
Related terms
- Paper trading: Paper trading is practising trades with pretend money, so you can learn how markets work and test strategies without risking real savings.
- Stock market simulator: A stock market simulator is a game or tool that lets you buy and sell with virtual money under market-like rules, to learn investing without financial risk.
- Real-time quote: A real-time quote is a stock's current price as trades happen, as opposed to a delayed quote that lags by 15 to 20 minutes.
- Risk management: Risk management in trading is limiting how much you can lose, through position sizing, stop-losses, diversification and avoiding too much leverage.
Guides
Practise with $10,000 in play money
Free. No real money involved.
For learning only. This isn't financial advice.