Of the following statements about a day trader, which is not correct?

Question

Question 19 options:

They have a short-term focus.

They may buy and sell on the same day.

They are more risk averse than most investors.

They may day trade as their career.

Answer 1

The statement that is not correct is:

They are more risk averse than most investors.

Day traders typically have a higher risk appetite compared to most investors, as they frequently engage in buying and selling of securities within short time frames, often leveraging their positions to maximize returns which can also increase risk.