Day Trading
Strategies
What it means
A style where you open and close all trades within the same day, holding nothing overnight. It avoids overnight gap risk but requires constant attention.
Example
A day trader buys AAPL at $150 at 10 a.m., rides it to $152.50, and sells at 2 p.m. They are flat (no position) by the 4 p.m. close, so a bad overnight news event cannot hurt them.
Mistake beginners make
Beginners hold "just until tomorrow" when a day trade goes against them, turning a planned day trade into a risky overnight position. The one time it gaps down is the one that hurts.
Related terms
- Swing Trading — A style where you hold trades for days to weeks, aiming to capture medium price swings. Le…
- Scalping — A style where you hold trades for seconds to minutes, aiming to capture many tiny profits …