What is day trading?

Day trading is a practice of buying and selling shares during the same day. A primary idea is to avoid keeping shares over the night, because over the night there might be a substantial change in price due to new informations.

Day trading is not riskier than other trading techniques, the use of margin makes the trading risky. On the other hand, there are more expenses due to commission on frequent buying and selling.

There are several strategies in day trading.

• Trend following assumes that stocks which have been rising steadily will continue to rise, and vice versa. Therefore buy rising stock and sell on profit.
• Playing on news assumes buying on good news and short selling on bad news.
• Range trading assumes observing support and resistance and current price.
• Scalping assumes very quick buy and sell on first profit (even very small)
• many others.