Day trading is a method of investing in which you buy and sell shares or other financial products within a single trading day. The position is always closed before the market closes. The goal is to profit from small price movements in the short term.
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With day trading, you respond to rapid price changes within the same day.
A day trader does not hold positions overnight and aims to profit from short-term market fluctuations. This requires quick decision-making and constant attention to price movements. Because the margins are often small, larger positions or leveraged products are sometimes used, which increases risk. Day trading can be profitable, but it also involves higher risk than long-term investing, because short-term movements are difficult to predict.
Short example:
Suppose a share costs €20 at 10:00 AM. A day trader buys 500 shares at €20 each. At 2:00 PM, the price has risen to €20.30. The trader sells the shares the same day.
The difference is €0.30 per share. 500 × €0.30 equals €150 profit before costs.
If the price had fallen to €19.70 and the trader had sold, the loss would have been €0.30 per share, resulting in a €150 loss.
Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult a professional advisor when making financial decisions. The information and tips provided on this website are based on the personal insights and experience of our analysts and are intended for educational purposes only.