Day trading is a strategy in which a trader buys and sells stocks throughout the trading day. The goal is to end each trading session with a net profit after commissions. Day traders primarily trade during the opening 60 minutes (9:30 - 10:30 AM EST) and closing 30 minutes (3:30 - 4:00 PM EST) of each market session, which is when price volatility is highest.
To make more than four day trades in any five-business-day period, a trader must be approved as a Pattern Day Trader, or PDT, which requires maintaining a balance of at least $25,000.
