day trading

Feb. 4, 1999: The Internet Stocks index page.

Daytraders.com

North American Securities Administrators Association

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Cushing Dolbeare of Washington, DC asks:


What is the definition of a "day trader"?

Marc Beauchamp, of North American Securities Administrators Association, Inc., responds:


In general securities regulators make distinctions between "day trading," "online trading" and "online investing." Day trading refers to the activity of investors who are customers of the three dozen or so brokerage firms that specialize in day trading. These customers usually use the facilities of these specialty firms; normally they do not trade from home. Most if not all of these day-trading firms require that the customer end the day with no positions. Day traders, as the name suggests, try to capitalize on market momentum, often buying and holding a position for only a few minutes, hoping to get a sixteenth or a quarter of a point. According to estimates from the Electronic Traders Association (ETA) there are between 5,000 and 10,000 day traders patronizing these specialty firms. Regulators in Texas, Massachusetts, Indiana, Colorado and elsewhere have brought actions against several day trading firms, for unlicensed activity and for allegedly misleading potential customers about the potential of day trading and minimizing the risks, which are substantial.

In contrast, "online trading" is what investors can do
So think of being an investor not a day trader which is a loosing preposition