What is Day Trading ?

Today we’re Going to Discuss What is Day Trading & How it Works ?

What is Day Trading ?
Day trading may be the most well-known active trading strategy. It is a common misconception to think that all active traders are day traders by definition, but that is not true.

Day trading involves entering and exiting positions on the same day. As such, day traders aim to capitalize on intra-day price movements, i.e., price movements that occur within a single trading day.

The term “day trading” originates from traditional markets, where trading is only open during certain hours of the day. Therefore, in those markets, day traders never hold positions overnight, when trading stops.

Most digital currency trading platforms are open 24 hours a day, 365 days a year. So, day trading is used in a slightly different context when it comes to crypto markets. It usually refers to a short-term trading style, where traders enter and exit positions in 24 hours or less.

Day traders will typically use price action and technical analysis to formulate trading ideas. In addition, they can use many other techniques to find inefficiencies in the market.

Day trading cryptocurrencies can be very profitable for some people, but it is often very stressful, demanding and carries high risk. As such, day trading is recommended for more advanced traders.