day trading
Same-session stock flipping
Day trading is buying and selling financial instruments within a single trading day, closing all positions before the market closes.
Day traders profit from small price movements rather than long-term appreciation, often making dozens of trades daily.
The practice requires constant attention to markets and carries substantial risk: She quit her job to try day trading but lost her savings within months.
Ownership stakes or inventory
- buyObtain through payment
- sellTransfer for payment
- securitiesTradeable financial assets
- equitiesOwnership stakes in corporations
broker · exchange · execution · order · position · scalping · intraday · platform
Resale at inflated prices
- reversalComplete change of direction
- arbitrageExploiting price discrepancies
- backtestingValidating strategies using history
- journalingRegular personal writing practice
Rapid, unpredictable changeability
- leverageBorrowed capital for amplified returns
- marginEdge of a page
- margin callBroker's request for funds
- drawdownReduction over time
whipsaw · stop-loss · risk management · capital preservation · losses · overtrading
Visual data displays
- indicatorsSigns that reveal status
- trendsPrevailing directions of change
- volumeAmount of space filled
- patternsRecurring arrangements or designs
candlesticks · support · resistance · breakout · moving average · RSI · technical analysis · signals
Increases in value
- returnsProfits from investments
- scalpSkin covering skull
- momentumProduct of mass, velocity
- swingSuspended recreational seat
capital gains · P&L · consistency · edge · alpha
Electronic securities exchange
- NYSELargest equities market
- S&P 500Major stock market index
- Dow JonesStock market benchmark
- futuresContracts for future delivery
options · forex · indices · commodities · crypto · premarket · after-hours · opening bell
stocks
Ownership stakes or inventory
- buyObtain through payment
- sellTransfer for payment
- securitiesTradeable financial assets
equities · broker · exchange · execution · order · position · scalping · intraday · platform · commission
scalping
Resale at inflated prices
- reversalComplete change of direction
- arbitrageExploiting price discrepancies
- backtestingValidating strategies using history
volatility
Rapid, unpredictable changeability
- leverageBorrowed capital for amplified returns
- marginEdge of a page
- margin callBroker's request for funds
drawdown · whipsaw · stop-loss · risk management · capital preservation · losses · overtrading
charts
Visual data displays
- indicatorsSigns that reveal status
- trendsPrevailing directions of change
- volumeAmount of space filled
patterns · candlesticks · support · resistance · breakout · moving average · RSI · technical analysis · signals · screener
gains
Increases in value
swing · capital gains · P&L · consistency · edge · alpha
NASDAQ
Electronic securities exchange
futures · options · forex · indices · commodities · crypto · premarket · after-hours · opening bell · closing bell
- investment pitfallsovertrading, panic selling, overleveraging, overconfidence, poor timing
- Trading Strategiesscalping, arbitrage, pyramiding
- Wall Streetstock market, bond market, stocks, shares, Wall Street
- risksrisk, gamble, bet, wager, chance it
- finance termsnet profit, gross profit, budget, credit, debt
- investingstocks, stock, bonds, investing, investor
day, trade, trader, trading, traded, trades, traders, tradable, day trader