TeenAnalyst.com

Daytrading
Term category: Strategies
In 10 words or less:  A strategy of trading stocks rapidly throughout the day.

Definition: Daytraders use momentum to rapidly buy and sell stocks.  They look to make a quick profit on the intraday movements and expect to be completely unexposed (meaning they've sold all their shares) by the end of the day.

Advice: Daytrading is a risky strategy because the investors are often highly leveraged.  What this means is that small price movements can create big gains, as well as big losses.

StockJargon encourages investors to stay focused on the long-term.

 

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