Within the financial sector, day trading is a preferred investment strategy that can be trade the day challenging yet rewarding. It involves buying and selling financial instruments in one single trading day. To succeed in day trading, an investor needs disciplined strategies and a comprehensive understanding of the market.

In day trading, investors do not hold their positions past the day's end. This speculative trading strategy has the potential to generate significant profits but also carries a high degree of risk. Therefore, it requires a calculated and strategic approach.

A successful day trader must have multifarious skills which include strong discipline and quick decision-making. Moreover, a deep market understanding, technical analysis skills, and sound judgement are essential for success as day trader.

Risks and challenges are synonymous with day trading. Market volatility and unpredicted shifts can result in significant losses. Moreover, day trading requires a significant investment of time and resources. Thus, assessing your risk tolerance, financial goals, and available resources is critical before you venture into day trading.

Various financial instruments are available for day trading. From stocks and forex to futures and options, traders can choose what suits their trading style best. Each of these instruments has specific advantages and pitfalls, so understanding your investment goals and risk tolerance is critical for picking the suitable trading instrument.

A solid trading plan holds of utmost importance importance to succeed in day trading. The plan should include details like the financial instruments one intends to trade, the risk tolerance level, and the profit targets. Also, it helps to have risk management strategies like stop-loss orders incorporated into the trading plan.

Constant Market observation plays an undeniable role in successful day trading. Keeping a close watch on international news, economic events, macroeconomic indicators, and market trends is essential for day traders. Such monitoring equips traders with insights into potential trading opportunities and risk factors.

While day trading might seem daunting initially, with perseverance, discipline, and effective risk management, it can act as a lucrative investment strategy. However, remember that day trading, like any investment strategy, does not assure profits and is subject to market risks. Therefore, it requires careful analysis and vigilant consideration before investing.