What is Day Trading

Day Trading is when you open a position and close it within the same day. This is typically done by trading equity ownership via stocks, bonds, FX, or option contracts and futures.

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Pattern day trading rule 25k only 3 trades allowed per day otherwise.

Cash accounts to be able to day trade without the $25,000 equity minimum.

Advantages of Intraday Trading

Unaffected by gap downs in price when if you are working with small profit margins.

Disadvantages of Intraday Trading

By closing out positions early, you potentially miss large overnight gains that could have occurred from changed in market news overnight. When making lots of trades for small margins the amount spent on commission prices.

Understand possible strategies, how it differs from longer term investing analysis. What do you look at when day trading? What do you look at when performing swing trades? And long term investing?

Day traders use take advantage of short term intraday market moves in order to take small profits.

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About the author: Dominick Muniz
Creator, web-developer, and writer at The Trading Space.

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