Day trading refers to the shortest time frame used in trading. Trades may last a few minutes to a few hours. This form of trading requires near full-time attention to the markets.

Frequently Asked Questions
  • How do I start day trading?

    Start by knowing what you're getting into: risk tolerance, goals, capital, as well as time and effort involved. Practice using a simulator, and start small. Research and pick a brokerage platform and set up an account. Create your trading plan, which you will review and edit at the beginning of each day as you create your watchlist for that day. Follow your plan and review your trades at the end of the day.

  • Is day trading legal?

    Day trading is neither illegal nor unethical. However, it is extremely complex and should only be tackled by experienced professionals. Most traders do not have the time, money, or knowledge required to sustain the discipline required to be successful.

  • How do you make money day trading?

    The financial media has widely speculated that 95% of day traders lose money, and many of that 95% continue to trade for a time despite being unprofitable. Those who do make money, succeed at predicting a stock's movements through rigorous research and a pinch of luck from time to time.

  • What's the difference between day trading and forex trading?

    Forex trading (foreign currency trading) can follow the same time frames as day trading, meaning it can be done in short bursts on a daily basis. But trading sessions for stocks are limited to exchange hours, generally 9:30 a.m. to 4 p.m. EST, Monday through Friday with the exception of market holidays. The forex market, on the other hand, remains active round-the-clock from 5 p.m. Sunday, through 5 p.m. EST Friday.

  • Is day trading gambling?

    Day trading can closely resemble gambling. For instance, when you place a day trade, you're betting that the price movements of a particular stock will go in a particular direction in the short term. If a person trades only for the emotional rush of winning and without the logical detachment offered by rigorous research, they are likely gambling. Traders driven by emotion may fail to recognize a losing bet and exit their positions.

Key Terms

Explore Day Trading

10 Steps to Becoming a Day Trader
Day Trading Schools and Courses
Day Traders: Retail vs. Prop Trading Accounts
Business graph with numbers and percents with two arrows going up
The Top 7 ETFs for Day Trading
Scalping: Definition in Trading, How Strategy Is Used and Example
The Perfect Moving Averages for Day Trading
Mastering Short-Term Trading
Mastering Short-Term Trading
Trading floor with traders working on it.
Introduction to Level II Quotes
Close-Up of Hand Using Mobile Phone
Pre-Market and After-Hours Trading Activities
What Is Level 2? Definition on Nasdaq, How It Works, and Example
Spread-to-Pip Potential: Which Pairs Are Worth Day Trading?
Man Doing His Accounting, Financial Adviser Working
Trading the Nonfarm Payroll Report
Tight-knit group of traders on phones and signaling with raised arms.
Ax
Trading in the Pre- and Post-Market Sessions
Cropped Image Of Man Checking Stock Market On Mobile Phone
Short Selling Basics
Cropped hand of stockbroker pointing at graph on screen.
Trading Volatile Stocks With Technical Indicators
Scalping vs. Swing Trading: What's the Difference?
Business Analysis Stockmarket With Digital Tablet
Top Day Trading Instruments
What Is a Scalper? How It Works in Trading, Legality, and Example
Level 1: Definition, How Trading Screen Works, and Accessibility
Graphic showing the intraday volume of a stock.
A Simple Way to Read Intraday Volume
Revolver
5 Must-Watch Films and Documentaries for Day Traders
Only Make a Trade If It Passes This 5-Step Test
Introduction to Trading: Scalpers
A man drinking coffee, looking at his laptop
Day-Trading Rules for Rookies
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City.
Stag
Securities traders sitting at desks in one large room
Opening Range: Overview and Examples in Technical Analysis
Scalp Trade Forex: Meaning, Risks and Special Considerations
Midsection Businessmen Analyzing Charts on Laptop in Office
Is a Slow Stochastic Effective in Day Trading?
Day-Trading Gold ETFs: Top Tips
Bid and Offer
Bid Tick
Colleagues working in an open floor plan
Trading Arcade
Introduction to Guerrilla Trading
Using Pivot Points for Predictions
8 Factors That Affect Daily Trades
Gauging Support and Resistance With Price by Volume
Advantages of Data-Based Intraday Charts
Cropped Image Of Man Checking Stock Market On Mobile Phone
Choosing the Right Day-Trading Software
Young traders analyzing computer data.
Best Undergraduate Degrees for Day Traders
Close up of hand holding a pencil over paper showing financial data next to a laptop
Guerrilla Trading
What Is Online Trading Academy?