Day Trading is nothing more than the process of buying or selling an asset – be it a security, a stock, a precious metal or a crypto- change. The full name of the game can be summarized as buy low, sell high. The “day” aspect of day trading is its short-term nature.
This is in direct contrast to the popular HODL meme, or “wait for the dear life”, in which you decide to buy a given cryptocurrency and keep it safe for potential long term, long term growth and long-term.
Day trading aims to enter the market, take a position, keep an eye on this position, then exit profitably. We are talking about times that last only a few minutes in arbitration until the end of the day.
It should also be noted that some so-called day traders hold certain positions for weeks or even months, depending on certain security objectives. For our purposes, it is always “day” trading.
It sounds simple enough. After all, isn’t it the goal of almost all types of financial activity to make a profit?
Advantages of day trading
Placing trade after trade throughout the day, actively monitoring each movement of the market and earning quick money are interesting aspects of Day trading. You can enter and exit an operation in 5 to 15 minutes. If successful, seeing that you have won hundreds of dollars in minutes can provide an adrenaline rush like no other.
Day trading can also provide you with better leverage than holding positions overnight. Day trading stocks can provide you with 4: 1 leverage as long as it meets certain criteria.
Day trading also offers you another type of leverage, as you trade so often that you can use the same capital in your account to trade many trades in a short period of time.