[ELI5]How do day traders lose money, why would they sell their stock for a loss in a day insyead of waiting for the cost to increase?

Question

[ELI5]How do day traders lose money, why would they sell their stock for a loss in a day insyead of waiting for the cost to increase?

In: Economics

Answer 1

Might not go up again in the near term. There’s risk holding stock overnight, if something affects overall market or stock in particular. Opportunity cost of not having capital to make other trade.