Day traders, by definition, trade on a very short-term time frame, seeking to generate profits by opening and closing positions hour-by-hour and having the majority of their positions closed by the end of the day.

Short-term profits and income are the goals with most day-traders, and the term is used more and more for “amateur” traders who trade from home and treat it as their primary occupation without being part of a brokerage firm. Day trading has become more and more prevalent for independent, non-affiliated investors who trade from their computers at home for hours a day.

The term can also apply to “professional” traders who trade on their firm’s account seeking intra-day gains. Day traders seek to maximize their profits from market open to close, or just however many hours they feel like trading, and are less concerned with long-term financial planning than short-term profits and income.

Low-fee online trading services, when combined with the technological advances of the financial services industry over the past 20 years, have made day trading more accessible to the average investor. Investors can also trade 24/7 now on Forex and derivatives markets, but the term Day Trading connotes short-term trading done as a “day job” or primary means of employment,

Day traders rely heavily on technical indicators and a proficiency with charting strategies.