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Questions and Answers
Which of the following financial instruments can be traded in day trading?
Which of the following financial instruments can be traded in day trading?
- Cryptocurrency (correct)
- Real estate
- Bonds
- Commodities
What is the main goal of day trading?
What is the main goal of day trading?
- To hold positions for a long period of time
- To make a profit from short-term price movements (correct)
- To maximize long-term returns
- To invest in stable financial instruments
When do day traders close their positions?
When do day traders close their positions?
- Throughout the trading day
- At the end of the trading day (correct)
- They do not close their positions
- At the beginning of the trading day
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Study Notes
Day Trading Basics
- Stocks, options, futures, forex, and cryptocurrencies can be traded in day trading
Day Trading Goals
- The main goal of day trading is to profit from the fluctuations in market prices within a single trading day
Trading Timing
- Day traders typically close their positions before the market closes for the day to avoid overnight risks
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