Psychology & Plan
Day trading
Opening and closing every position within the same day, so nothing is held overnight. No swap costs and no weekend gap risk, but it demands several focused hours during your session.
Also called: day trader, intraday
In practice
A day trader reviews the economic calendar at the London open, marks the day's levels on EUR/USD and GBP/USD, and takes two to four trades off the 15-minute chart. By 5pm every position is closed and the trader is flat into the overnight.
Why it matters for traders
Day trading removes two costs that swing traders always pay — overnight swaps and weekend gap risk — in exchange for concentrated screen time and tight discipline. It is a good fit for people who can give two to four focused hours to the market; it fails for those who cannot be present at the session's most active hours.
Common pitfall
The pitfall is calling yourself a day trader and then holding a losing position overnight because 'it will come back,' which reintroduces exactly the swap and gap risk day trading is meant to avoid. Day trading demands the discipline to close everything by session end, win or lose. If you cannot commit to being flat — and present for the most active two to four hours — a swing approach fits a busy schedule far better.
Lessons that use this term
- Trading styles overview
Scalping, day trading, swing trading and position trading — the time commitment and risk profile of each.
Related terms
Trade Forex, Metals & Crypto with Exness
Ultra-low spreads from 0.0 pips, instant withdrawals, no deposit fees. Regulated across multiple jurisdictions.
Spreads may fluctuate and widen due to factors including market volatility, news events, market open/close, and others. Processing times may vary depending on the chosen payment method.