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Even day traders have their capital in some instrument, be it cash, real estate, stocks etc. It's not unlikely that in addition to day trading, this trader inve
by sirclueless 11y ago
Even day traders have their capital in some instrument, be it cash, real estate, stocks etc. It's not unlikely that in addition to day trading, this trader invested a large amount of money into the stock market (and indeed, we have been told he did not invest in real estate).
- ScottBurson 11y agoMost day traders close all their positions at the end of each trading day, so as not to be exposed to overnight gap risk. (A "gap" is when the opening price in the morning is not equal to the previous day's closing price. These occur when relevant news arrives after the 4pm ET close.) So if he was really a day trader, he would have been in cash. It's possible he had been spoiled by the big bull market and didn't know how to trade successfully in a bear market. Different tactics are required.