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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, CPAUpdated Sep 6, 2024 at 1:27 PM

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.

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