Day trading is a strategy where an investor buys and sells securities within the same trading day. The goal of day trading is to make quick profits by taking advantage of small price movements in highly liquid stocks or other securities. Day traders often use technical analysis and charting to identify short-term buying and selling opportunities. They also use strict risk management techniques, such as stop-loss orders, to limit potential losses. Day trading can be a high-risk and high-reward strategy, and it is not suitable for all investors. It requires a significant amount of time, knowledge, and capital to be successful. It also has high stress, and it can be addictive for some people.

A day trading strategy involves buying and selling financial assets, such as stocks, forex, or cryptocurrencies, within the same trading day to capitalise on short-term price movements. Traders use technical analysis, chart patterns, and indicators like moving averages, RSI, and MACD to identify entry and exit points. Common strategies include scalping (profiting from small price changes), momentum trading (riding strong trends), and breakout trading (entering trades when prices cross key levels). Risk management is crucial, with stop-loss orders limiting losses and position sizing ensuring no single trade risks too much capital. Day trading requires discipline, quick decision-making, and a solid understanding of market behaviour. While potentially profitable, it carries high risk and demands constant monitoring of market conditions.