What is day trading and who can do it?

In principle, anyone can trade in the stock market, and many people engage in some form of investing, perhaps even more than you think. Even you can be invested in the market without much knowledge of it. That’s because pension funds invest your investment like 401k and others in the market in order to achieve returns. This way they can give you a good income by the time you retire. Within a day the positions are bought and sold again, so it is a dynamic form of trading. Day trading is often done by professionals, but you can also learn and day trade if you get the correct education, but first let’s talk a little more about what day trading is.


Day trading is when someone buys and sells a position of stock on the same day. In fact, most traders take positions with a much shorter timeframe. For example, a purchased position may be sold again within an hour, fifteen minutes, or even within a few minutes. This sometimes can be thought of as a risky way of investing. As a matter of fact, most experts advise against this and always say that beginners should keep the position for a long time and letting the stock develop, but when day trading is involved, the advice given is to sell once you get some profits.

A day trader, therefore, bets on small profits. Normally, a rate does not change more than a few percent, or even a few tenths of a percent, per day. Let stand by the hour. Hence, day traders often use leveraged positions. So they take large positions in order to make more money within that trade.


As I said, the advice to have patience as an investor does not apply to day trading. Day trading is a form of fast investing, it is about fast and (relatively) small profits. Substantive knowledge of the products in which you trade is actually not required. Where most traders invest all their time is in the stock’s technical analysis, they look at charts and patterns in order to guide them into a trade. Most professional day traders start by studying charts and take day trading courses for beginners. This helps them understand how the market works and gives them knowledge about stock charts.


As mentioned above, technical analysis is what helps traders the most. Think of price developments, patterns, and other matters that can influence the price development for that day such as the aforementioned events. It is never wise to invest based on emotions.

A great way to learn how to control emotions is by practice and reading the market sentiment. Most people join the trading communities in order to gauge the market. There are many trading rooms out there but as but professionals tend to go with the best day trading chat room they can find. This helps them gauge the market as they trade together with a community of traders.