Editing 1course Stock Market (section)

== Key Concepts in Day Trading ==

=== 1. Liquidity ===
Liquidity refers to how easily an asset can be bought or sold without affecting its price. Day traders prefer highly liquid stocks because they can enter and exit positions quickly.

=== Example: Stocks like Apple and Amazon are highly liquid, making them popular choices for day traders. ===

=== 2. Volatility ===
Volatility measures how much an asset’s price fluctuates. Day traders look for volatile stocks because they provide more opportunities for profit.

=== Example: A biotech stock might experience high volatility due to news about a new drug approval, creating trading opportunities. ===

=== 3. Volume ===
Volume is the number of shares traded during a specific period. High volume indicates strong interest in a stock, which is essential for day traders to execute trades efficiently.

=== Example: A stock with high trading volume allows day traders to buy and sell large quantities without significantly impacting the price. ===