Basics of Day Trading
What is day trading?
Buying and selling a stock in the same day.
What is a candlestick?
Chart type showing open, close, high, and low prices.
What is a market order?
Buys or sells instantly at the current price.
What is a trend?
The overall direction a stock is moving (up or down).
What is the PDT rule?
You need $25,000 to make more than 3 day trades in 5 days (U.S. rule).
What is a “day trader”?
A person who opens and closes trades within the same day.
What is a ticker symbol?
Short code used to identify a company (e.g., TSLA).
What is a limit order?
Buys or sells at a specific price you choose.
What is support?
A price level where a stock tends to stop falling.
What is a gap?
When a stock opens higher or lower than its previous closing price.
What is a stock?
A share of ownership in a company.
What is volume?
The number of shares traded.
What is a stop-loss?
Automatic sell to limit losses.
What is resistance?
A price level where a stock tends to stop rising.
What is a trading plan?
What does “buy low, sell high” mean?
Make profit by buying cheaper and selling at a higher price.
What is volatility?
How much and how fast a stock’s price moves.
What is a day-trading strategy?
A plan that tells you when to enter and exit trades.
What is a watchlist?
A list of stocks you’re monitoring for trading opportunities.
Why do people lose money day trading?
Because of emotion, no plan, bad risk management, or chasing trades.
What is a chart?
A graph showing a stock’s price movement over time
What is a broker?
Platform you use to buy and sell stocks.
What is “momentum trading”?
Trading stocks that are moving fast in one direction.
What is paper trading?
Practicing trading without using real money.
What is risk management?
Controlling how much money you risk per trade.