Day trading
Day trading is a style where trades are opened and closed within the same day, with no positions held overnight. The trader aims to profit from intraday price moves.
How it works
A day trader works on short timeframes (usually 5 minutes to 1 hour) and makes one to several trades a day. Positions are not held overnight or over weekends, which reduces gap and overnight news risk. In crypto, which trades around the clock, the day usually means your own trading session.
The style takes screen time, discipline and a clear plan. Costs are higher than for long-term trading: many fees, spreads, and funding on futures. Most beginners lose money day trading because of overtrading and emotion.
Day trading sits between scalping (trades lasting seconds to minutes) and swing trading (positions held for days or weeks). Which style fits depends on your free time, temperament and account size.
You trade ETH on the 15-minute chart. In the morning you buy at $3,000 with a stop at $2,970 ($30 risk per ETH) and a target of $3,060. The target hits by lunch: +$60 minus about $6 in fees. By evening you are flat. Your daily loss limit is 2% of the account; once it is hit, you are done for the day.
The biggest mistake is trying to win back a loss the same day by sizing up and trading more. That leads straight to overtrading and a much bigger loss. Set a daily loss limit and a maximum number of trades in advance, and stop when you reach either.
Questions and answers
What is day trading in simple terms?
It is trading within a single day: you open and close the trade before the day ends, and nothing is held overnight.
How much can you make day trading?
There is no guaranteed income, and most beginners lose money. Results depend on the strategy, discipline and risk control.
What is the difference between day trading and scalping?
A scalper holds trades for seconds or minutes and makes dozens of them. A day trader holds for minutes to a few hours and trades less often.
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Updated: 2026-10-19