The Core Concept

Day trading is the act of buying and selling a financial instrument (like stocks, forex, or crypto) within the same trading day. Day traders seek to profit from small price fluctuations in highly liquid markets.

The Golden Rule: Day traders rarely hold positions overnight. They close all trades before the market closes to avoid "gap risk" (prices changing drastically while the market is sleeping).

How it works

Unlike investors who look at the long-term health of a company, day traders look at price action and volatility. They use charts to spot patterns.

• Long Position: Buying with the expectation the price will go UP.
• Short Position: Selling borrowed shares with the expectation the price will go DOWN.

Experiment Labs: Try It Yourself

Below is a live market simulator. The chart generates random price movements that mimic real stock volatility. Your goal is to end the session with a profit.

Instructions: Watch the chart. If you think it's going up, click BUY. When you have a profit, click CLOSE POSITION.