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Strategies & Market Trends : The Best Day Trader Training -- Ignore unavailable to you. Want to Upgrade?

To: World Wide Trader who wrote (112)	11/25/1998 2:05:00 PM
From: dfloydr	Read Replies (2) \| Respond to of 230

Wednesday November 25, 1:15 pm Eastern Time State regulators warn about risks of day trading By Joanne Morrison WASHINGTON, Nov 25 (Reuters) - State securities regulators on Wednesday issued a warning to investors trying to make quick profits from stock movements by making rapid-fire purchases and sales of a stock in a day, commonly called day trading. ''For the typical retail investor, day trading isn't investing. It's gambling,'' said Phillip Feigin, executive director of the North American Securities Administrators Association (NASAA). For the sophisticated market player, Feigin said, speculative day trading is fine. The group said it is opposed to the practices of several dozen firms around the United States, which it said attempt to lure in average retail investors and allow them to use proprietary trading systems for day trades. At those firms, investors use computers and proprietary software to make rapid trades, hoping to capitalize on a stock's momentum on a particular day. By darting in and out of stocks they hope to lock in profits of pennies per share. But Feigin warns that most of these investors do not even take into account important information about a publicly traded company but rather look for a stock's movement on a particular day. State regulators are concerned that many of the novice day traders are given unrealistic expectations. ''A mouse and a modem alone won't make you a successful day trader,'' warned Peter Hildreth, New Hampshire's Director of Securities and NASAA's president. ''Successful day trading takes hard work, discipline, a strong stomach, and luck,'' Hildreth added. Regulators said they are also concerned about investors conducting similar trades at home through on-line brokerage services like E*Trade (Nasdaq:EGRP - news), Datek Online and Ameritrade. ''When you trade online there's no one standing between you and the market. No one's obligated to ensure that the investment is appropriate given your age, income and financial goals,'' Hildreth said. More Quotes and News: E Trade Group Inc (Nasdaq:EGRP - news) Related News Categories: US Market News