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Characteristics of Day Trading

Day trading is one of the most popular trading styles. It means buying and selling stocks in a short period of time, usually a single day. The purpose of day trading is to earn a small amount of profit through each trade.

Many trading experts choose to select day trading as their full-time career. If it is done properly, it can become an excellent career. Most of the professional day traders get success after working very hard in the first few years of trading. They can well-established in the trading sector by gaining extensive knowledge and skills in the markets.

There are some very specific characteristics of day trading which are elaborated as follows:

Expertise and Experience

The importance of expertise and knowledge cannot be understated in day trading. People who try to day trade without any kind of skills and experience about the marketplace are destined for suffering huge losses. Some of the very basic skills in day trading are understanding technical analysis, Ichimoku Cloud system, and reading of various types of market charts.

Only having knowledge about the systems, charts, and the markets is not enough as you must be familiar with the application of this knowledge. In such a scenario, practical experience comes into play. Once you start observing the markets closely, you will learn a lot of nuances about day trading, which can help you in becoming a successful day trader. 


Adequate Money for Investment

It should go without saying that money is the base of any type of trading, including day trading. Usually, day traders allocate a certain amount of money as the risk capital, which they can manage to lose due to a bad investment. It protects the traders from financial troubles and eliminates the emotions of loss and failure from the trading process.

In the initial stages, you need to have some kind of risk capital to make sure you are not risking your future by day trading. In later stages, you may need access to a large number of funds for successful trading on intraday stocks.


There are some specific strategies involved in day trading. For instance, news-trading, swing trading, and range trading. Any strategy must be adopted after careful evaluation. Such techniques can be adapted to the current market situation and anticipated price movements. 


Day trading has become a highly competitive place. If you want to establish strong roots in the day trading sector, you must have the discipline to put in a great amount of time, energy, and efforts into your work. Like in any other part of life, you cannot become successful in day trading without hard work.


Studying about the volatility of a market is the key to success in day trading. A volatile stock that moves a lot during a single day is the most attractive stock to the majority of the day traders. Moreover, heavy liquid stocks are also very appealing because it is effortless to move such stocks without affecting their prices. 

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