Question 1

What is day trading?

Accepted Answer

Day trading means opening and closing positions within the same trading day, so nothing is held overnight. It focuses on short-term price moves and usually involves many trades and frequent decisions, which demands time, attention, and discipline.

Question 2

Do most day traders make money?

Accepted Answer

Several published academic studies of large groups of active day traders report that a large share lose money over time, and that only a small minority are consistently profitable after costs. This lesson states those findings as facts, not as a prediction about any one person.

Question 3

Why do trading costs matter so much in day trading?

Accepted Answer

Because day traders take many trades, the spread, commissions, and slippage are paid over and over. Costs that look tiny on one trade add up across hundreds, and they come out of results before any edge can show.

Question 4

Is day trading the same as investing?

Accepted Answer

No. Investing usually means holding assets for the long term and expecting them to be worth more later. Day trading is short-term, high-frequency, and closes everything by the end of the session, so the skills, time commitment, and risks are very different.