An investor buying and selling securities within the same trading day.
A day trader is an investor who buys and sells securities (stocks, options, futures, cryptocurrencies) within the same trading day, aiming to profit from short-term price movements. Day trading requires significant time, knowledge, and emotional discipline. The vast majority of day traders lose money; success requires superior skill and discipline. In the U.S., day traders (those making more than 3 round-trip trades per week) must maintain $25,000 in account equity. Day trading differs dramatically from investing: traders focus on volatility and short-term moves; investors focus on long-term fundamentals. For most people, day trading is expensive gambling, not investing.