What is day trading?

Day trading is the buying and selling of securities within a very short time frame. Strictly speaking, it means that all buys/sells for a given instrument close on the same day — hence the name. But the term has come to apply to other lengths of time as well, from a few days to a month or so.

Day traders typically do not consider the strength of the underlying business when deciding to purchase shares in a company. Rather, they may refer to technical patterns, the momentum of price movements, or some other consideration for their decision.

At The Motley Fool, we believe that day trading may be detrimental to your wealth. When we recommend a stock in any subscription or strategy, we are doing so with the intention of holding that stock for 5 years, minimum.  Here at The Motley Fool, we stand behind a long-term buy-and-hold strategy across the board for any recommended stock.

Check out The Ascent's article on day trading here.

Learn more about The Ascent here.


Still can't find what you're looking for?

Let us know and someone from The Motley Fool will get back to you.

Contact us