daytrader

Quick stock flipper

A daytrader buys and sells financial instruments—stocks, options, currencies—within a single trading day, closing all positions before markets close.

The strategy aims to profit from small price movements rather than long-term growth.

Daytrading requires constant attention to markets and carries significant risk: He quit his job to become a daytrader but lost his savings within six months.

Also spelled day trader.

strategies

scalping

Resale at inflated prices

shorting · hedging · position · algorithmic · high-frequency · breakout · reversal · contrarian

instruments

stocks

Ownership stakes or inventory

  • optionsAvailable courses of action
  • futuresContracts for future delivery
  • forexCurrency trading market

commodities · cryptocurrency · equities · securities · derivatives · ETFs · indices · shares · warrants · bonds

risk

volatility

Rapid, unpredictable changeability

diversification · loss · risk-reward · blowup · overtrading · discipline · psychology

platforms

brokerage

Transaction-facilitating service

  • exchangeMutual giving and receiving
  • NASDAQElectronic securities exchange
  • NYSELargest equities market

terminal · software · screener · hotkeys · monitors · API

mechanics

margin

Edge of a page

bid · ask · spread · slippage · order · stop-loss · fill · commission · volume · entry

analysis

charts

Visual data displays

patterns · support · resistance · RSI · Fibonacci · divergence · oscillators · trendlines

Opposites
investment time horizon

daytraderlong-term investor

One holding assets for years

passive investor · value investor · Warren Buffett · swing trader

risk tolerance and speculation level

daytraderbond holder

Owner of debt security

Family

day, days, daily, trader, traders, trade, trades, traded, trading

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Concrete · Rated G