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A stockmarket enthusiast who trades from
a pc, perhaps as many as 50 times a day. Day traders are viewed with
animosity by some investment managers, who have accused them of distorting
the stockmarket and causing volatility in share prices. Their very existence
is a tribute to the democratising power of the internet is the response. On
the net anyone can be a trader, not just the elite. Many of them, however,
must now be wishing they had stuck to more traditional investment
strategies. A 2001 report by the North American Securities Administrators
Association Claimed that over 70% of day traders would lose not just
money, but everything they own as well. The general risks of day trading,
allied with the collapse of global stockmarkets, has made it a less popular
activity than it was at the height of the dotcom boom, but hundreds
of websites offering advice to would-be investors still exist. |
