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GOBankingRates
GOBankingRates
Vance Cariaga

The Tax Cost of Day Trading: What New Investors Don’t See Coming

FatCamera / Getty Images/iStockphoto

There are numerous ways to make money as an investor — and just as many ways to lose it. That’s why most investors are advised to take a long-term approach that helps them ride out losses while the markets recover.

Day traders are different. They take a high-risk approach that involves buying and selling securities within a single day. The goal is to lock in short-term gains that accumulate and compound over time.

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