If you have opened and closed a position on the same day, you have engaged in day trading. A day trade is the act of buying and selling stocks during the same trading day, without holding positions overnight.

As opposed to swing traders, who use other strategies such as swing trading on events, day traders open and close trades within a relatively similar trading session. When it comes to day trading, technical analysis is extremely important, as day traders are attempting to predict price changes minutes or seconds before they occur. The basic rule of thumb for investing is to buy low and sell high.

On the other hand, technical analysis gives traders a hint as to when the next high or low will occur, and they use that information to place trades. By utilizing strategies such as momentum and gap-and-go (or perhaps even seconds), day traders can enter and exit positions rapidly.

Day trading is a short-term investment strategy where traders buy and sell financial instruments such as stocks, forex, or commodities within the same trading day. The goal is to capitalize on small price movements by quickly entering and exiting positions. Day traders often use leverage and advanced strategies, including technical analysis, chart patterns, and real-time data, to make rapid decisions and seize fleeting opportunities.

Day trading requires a high level of discipline, focus, and market knowledge, as well as an understanding of trading costs, as frequent trades can generate substantial fees. This fast-paced approach contrasts with long-term investing, where positions are held over extended periods. Day trading is often considered high-risk and may result in significant gains or losses due to rapid market fluctuations.