Day trading is a strategy in which a trader buys and sells a financial instrument within the same trading day.
All positions that are opened during the day are closed on the same day, before the market closes for the trading day again. It helps avoid risks related to price gaps between one day's close and the next day's price at the open, which is one of the main advantages of this strategy.
On the contrary, what are some disadvantages?
- Risks associated with trading during high volatility;
- Time commitment: as traders must monitor the market and manage positions throughout the trading day, it may require a significant amount of time.
In summary, day trading system can be a very profitable way to invest. Still, as it is also considered risky, traders should carefully evaluate their skills to understand if this strategy is suitable for them.
Comments
0 comments
Article is closed for comments.