What is the practice of buying and selling stocks frequently for short-term profit called?

The practice of buying and selling stocks frequently for short-term profit is known as day trading. This strategy involves making numerous trades within a single day, often holding onto stocks for just minutes or hours, to capitalize on small price movements. Day traders rely heavily on technical analysis, chart patterns, and market trends, employing quick decision-making skills to maximize their profits. Their goal is to take advantage of the volatility in the stock market and make rapid trades to accumulate profits before the market closes each day.

In contrast, long-term investing involves holding onto investments for an extended period, allowing for growth over time through market appreciation and dividends. Value investing focuses on identifying undervalued stocks to purchase and hold until they reach their true market value. Growth investing aims at stocks expected to grow at an above-average rate, often resulting in holding those stocks for a longer duration rather than engaging in frequent trades.