#DayTradingStrategy

Day trading is a short-term investment strategy that drastically differs from the long-term 'buy and hold' approach.

Therefore, investors using this method typically hold their positions for a very short time (often no longer than a few hours or even minutes).

The intent of day trading is to take advantage of short-term price changes in assets during a single day to generate profit.

It is also characteristic that investment decisions are made based on current trends.

Investors aim to profit from small price differences but with high frequency, which allows for maximizing potential profits.

This involves opening and closing positions even within a few minutes, as long as market conditions allow.

A key assumption of day trading is therefore to react quickly to the changing situation and make decisions based on short-term forecasts. Although the profits from a single transaction may be relatively small, regularly closing positions 'in the black' can yield significant results over the course of a year.

To illustrate this strategy, we will use the example of trading the currency pair BTC/USD. This occurs in several steps:

- The trader assumes that the value of Bitcoin against the dollar will increase.

- Therefore, they decide to invest 500 $ in this pair.

- After a few hours, the exchange rate rises by 7%.

- The trader then closes the position with a profit of $35.

Although the prospect of further increases might be tempting, in day trading, it is crucial to adhere to the principles of discipline and strategy that dictate closing the position at the right moment. Consequently, this strategy requires the investor to have substantial knowledge, emotional control, and the ability to act quickly in a changing market.