What is an active trader?

Active traders are individuals or professionals who frequently buy and sell financial instruments, such as stocks, options, or currencies, with the goal of profiting from short-term price movements. Unlike passive investors, who typically hold investments for the long term, active traders make multiple trades throughout the day, week, or month. They often use technical analysis, market news, and trading strategies to identify opportunities. Active trading requires a deep understanding of the markets, quick decision-making, and diligent risk management.