Day Trading: The Basics and How To Get Started

There was a time years ago when the only people able to trade actively in the stock market were those working for large financial institutions, brokerages, and trading houses. The arrival of online trading, with the instantaneous dissemination of news, has leveled the playing field. Easy-to-use trading apps and the 0% commissions of services like Robinhood and Charles Schwab have made it easier than ever for retail investors to trade.

Day trading can be lucrative as long as you do it properly (though there is never a guarantee). However, it's typically challenging for novices and often a losing way for newer investors to trade.

The only way to improve these odds is to learn the ins and outs of technical strategies and other crucial parts of the market, while also picking the right day trading platform.

KEY TAKEAWAYS

Day traders buy and sell stocks or other assets during the trading day to profit from the rapid fluctuations in prices.

Day trading employs various techniques and strategies to capitalize on these perceived market inefficiencies.

Day trading is often informed by technical analysis of price moves and requires a high degree of self-discipline and objectivity.

Day trading employs various techniques and strategies to capitalize on these perceived market inefficiencies.

Day trading is often informed by technical analysis of price moves and requires a high degree of self-discipline and objectivity.

Technical analysis: Focuses on past prices and trading patterns to predict coming trends.

Momentum trading: Capitalizes on short-term trends and reversals to capture quick gains.

Unlike long-term investors, day traders are less concerned with the fundamental value of the securities and more focused on capturing immediate gains from market fluctuations.