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You might already know that stocks react quickly to news events. A missed earnings number will cause a lets go bransdon ugly christmas 2021 T Shirt to fall; FDA approval for a new drug will cause a stock to take off. By keeping an eye on the business news, day traders can capitalize on the popular daily stories. If bad news is out, you might short the stock during the day by “borrowing” shares of the stock from the investment firm and then selling those borrowed shares. If the stock price declines as expected, then you buy the shares back at the lower price and profit from the difference less a commission payment. If the news is good, you go long or buy the stock outright and sell the shares after the price rises. “Day trading is extremely risky and can result in substantial financial losses in a very short period of time,” according to the SEC website. If you’re clamoring to try your hand at day trading, only invest money that you can afford to lose.

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