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To: Mike M who wrote (28152)	11/26/1998 2:48:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164687

Investors Cautioned on Day Trading .c The Associated Press WASHINGTON (AP) -- State securities regulators are warning people to be wary of engaging in day trading, a risk-prone practice that is growing in popularity among ordinary investors who are lured by the prospect of quick riches. ''For the typical retail investor, day trading isn't investing, it's gambling,'' Philip Feigin, executive director of the North American Securities Administrators Association, said Wednesday. ''If you want to gamble, go to Las Vegas: the food is better.'' Day traders seek out stocks solely for their sharp price swings -- often focusing on big technology names like Intel, Microsoft or Dell. They buy and sell those stocks quickly to capitalize on the short-term movement in price, rarely ever holding a position overnight. Several dozen day trading firms operate around the country, offering training courses and computer programs that can cost thousands of dollars. Generally, investors are required to pony up a minimum anywhere from $25,000 to $100,000 to open a day trading account. In issuing their warning Wednesday, regulators said they are concerned day- trading firms may be giving novice day traders unrealistic profit expectations. Regulators also say the same caution should be exercised by people who trade from home using online brokerage services. But James Lee, president of the Electronic Traders Association, which represents day trading firms, said regulators are unfairly tarnishing the entire industry because of ''a few rogue firms'' that may have misled investors about profit expectations. Lee challenged regulators to produce evidence that indicates complaints are more rampant against day trading firms, which account for about 15 percent of the daily trading volume on the Nasdaq Stock Market, than other brokerage businesses, such as online traders of traditional full-service securities firms. ''I would encourage them to produce statistics on complaint letters,'' said Lee, who also is chief executive of Momentum Securities, a Houston-based day trading firm. ''I wonder what the root of this is. Sure there are bad apples. But an industrywide condemnation, I don't think is warranted.'' The industry has boomed in recent years along with the stock market, but has drawn increasing scrutiny from regulators lately. Regulators in Massachusetts recently filed complaints against two day trading firms doing business in the state. If you still want to day trade, the state regulators recommend that you: Check out the day trading firm with your state securities regulator to see if it's properly registered and whether it has a disciplinary history. Only invest an amount of money you can afford to lose. Closely examine commissions, fees and training costs charged by the day trading firm. Carefully read contracts with the firm. Be very skeptical when you're promised huge returns. AP-NY-11-25-98 1552EST