What Is Day Trading – A Simple And Quick Explanation Beginner’s Only!

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What Is Day Trading – A Simple And Quick Explanation
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What is day trading? So, this is a question that I am asked every so often. Despite seeing some of these day trading videos that I make some people just still have trouble grasping the definition of day trading. So, in this video I lay it out for you in an easy to understand format.

In fact when I was younger I had an idea of the several different professions that I wanted to go into. And to be honest with you I didn’t actually know it at the time but I did want to be a day trader. But I just didn’t know what the heck it was.

I actually thought that what I wanted to do was be a stock broker or a financial planner. Not actually realizing that what I wanted to do was day trade. I wanted to look at charts and analyze them. These are all the things that day traders do.

So, we begin with the layman’s terms definition of what is day trading. Day trading is actively participating in any of the security markets with the intention of making a profit. Day traders are typically only involved in trades for the day. They hardly ever hold overnight. If you are holding overnight you more or less are a swing trader.

Day traders are often in positions for seconds or minutes. In fact the longest trade I’ve ever been in was just over the one hour mark. And let me tell you it was very boring and that style of trading just doesn’t suite my personality.

Another important thing to understand about day traders is that they have the ability to make money whether the market goes up or down in price. They can either buy or go long in the market. Or they can take a short or sell in the market. Each of these can yield them a profit if the price goes in the right direction.

So, overall the definition of what is day trading can be simply stated as someone who buys any equity at a given price with the intention of making a profit from that equity within the given day. Again the majority of day traders will not hold their position overnight.