Day trading involves opening and closing financial positions within the same trading day, never holding them overnight. The goal is to profit from small, short-term price fluctuations.
Popular day trading strategies include scalping, aiming for many small gains on minor price changes; momentum trading, capitalizing on strong price trends; and breakout trading, entering trades when prices move decisively past support or resistance. Day traders rely heavily on technical analysis, using charts and indicators to identify entry and exit points. Due to the rapid pace, day trading requires intense focus, quick decision-making, and robust risk management to protect capital. It's a high-risk, high-reward approach not suitable for everyone.