Day trading is a type of investing where you buy and sell a security within the same day. You can day trade any security, including stocks, options, and futures contracts.
Day traders typically enter and exit trades multiple times throughout the day, seeking to profit from small price movements. It can be a risky way to invest, but it can also be profitable if you have a solid strategy.
If you’re considering day trading, it’s important to educate yourself about the pattern day trading rule, and the risks and potential rewards of this investment style.
Day trading is when you buy and sell a stock on the same trading day. Oftentimes, 'day traders' will execute multiple trades in a day and hold onto each position for only a short period of time.
Is day trading legal?
Yes, day trading is legal. However, you should check with your broker to ensure you have the correct account type and minimum funds to avoid the pattern day trading rule.
Is day trading profitable?
There are a variety of trading strategies that capitalize on intraday movements for different security types, including 0DTE options strategies. A strategy's profitability is dependent on multiple factors, and no one strategy is perfect. You should identify a strategy and an asset class that fits your schedule and psychology.