[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

Fear that a stock price may never increase again in the near future and/or that the principal could be used elsewhere for greater returns.

Or trading options, but that’s another story.