Investing Dictionary
Basics

What is Day Trading?

Buying and selling stocks within the same day

Full Explanation

Day traders open and close positions within a single trading day, never holding overnight. It requires extreme focus, speed, and discipline. Studies show the vast majority of day traders lose money.

Pro Tip

The PDT rule requires $25,000 minimum to make more than 3 day trades per week in the US.

Related Basics Terms

REIT

A company that owns real estate you can buy like a stock

Roth IRA

A retirement account you fund with after-tax money and withdraw from tax-free

Sector

A group of companies in the same type of business

Share

One unit of a stock

View all Basics terms →

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