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What is Day Trading? How Does it Differ From Investing?

Learn why day trading is probably not in your best interest.

By Sam Swenson, CFA, CPA – Updated Sep 6, 2024 at 1:27PM

Key Points

  • 95% of day traders lose money, indicating high risks in short-term trading strategies.
  • Long-term, buy-and-hold investing in ETFs increases chances of profit over time.
  • Day trading incurs high tax rates on short-term gains, reducing overall profits.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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