What is Day Trading?
Let's find out Day Trading meaning, definition in crypto, what is Day Trading, and all other detailed facts.
Day trading is the process of regularly purchasing and selling assets to gain profit on changes in their price.
Day traders utilize several tools and methods to administer the best trades possible. That includes analyzing and researching the price history of an asset to determine the pattern that could eventually repeat itself. This is called the technical analysis.
Another way is to trade just based on instinct. While the first option may seem more logical, others believe that you can’t possibly determine the future of prices.
However, a day trader is constantly trying to predict the short-term price action of the asset they are trading to perform profitable buy or sell deals. Overall, it is a high-risk and high-reward process, since a huge number of aspects control intraday price fluctuations. There are some that can’t be evaluated.
Cryptocurrency and other market asset values typically fluctuate during the day as a result of market dynamics of supply and demand. Typically, in less volatile circumstances, these fluctuations are too little to be a source of worry for long-term investors.
Nonetheless, there is a subset of market players known as day traders who deliberately seek to profit from these changes.
The cryptocurrency market is very volatile, making it a dangerous yet rewarding investment for day traders. When the price of an asset fluctuates by 10% in a single day, the gains and losses might be enormous.
A Forbes article wrote that the success rate for day traders is only around 10%. So, 90% of them might be losing their money. And, in addition, only 1% of traders are supposedly making a big amount of money.