Rather than holding positions overnight, day traders usually open and close trades within the same day to manage risk and avoid after-hours surprises. They often concentrate on ASX-listed companies with frequent price swings or recent market catalysts. Liquidity is essential, so shares that trade in large volumes—such as those in the ASX 200—are preferred. Day traders also react to broader market sentiment, economic data, and global cues, making adaptability crucial. Their strategy is not based on long-term fundamentals but on real-time market behavior and short bursts of price action.