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Be cautious of claims of large profits from day trading.
You should be wary of advertisements or other statements that
emphasize the potential for large profits in day trading.
Day trading can also lead to large and immediate financial
losses.>
Day trading requires knowledge of securities markets.
Day trading requires in-depth knowledge of the securities
markets and trading techniques and strategies. In attempting
to profit through day trading, you must compete with professional,
licensed traders employed by securities firms. You should
have appropriate experience before engaging in day trading.
Day trading requires knowledge of a firm's operations.
You should be familiar with a securities firm's business practices,
including the operation of the firm's order execution systems
and procedures. Under certain market conditions, you may
find it difficult or impossible to liquidate a position
quickly at a reasonable price. This can occur, for example,
when the market for a stock suddenly drops, or if trading
is halted due to recent news events or unusual trading activity.
The more volatile a stock is, the greater the likelihood
that problems may be encountered in executing a transaction.
In addition to normal market risks, you may experience losses
due to systems failures. >
Day trading will generate substantial commissions, even if
the per trade cost is low.
Day trading involves aggressive trading, and generally you
will pay commission on each trade. The total daily commissions
that you pay on your trades will add to your losses or significantly
reduce your earnings. For instance, assuming that a trade
costs $16 and an average of 29 transactions are conducted
per day, an investor would need to generate an annual profit
of $111,360 just to cover commission expenses. > >
Day trading on margin or short selling may result in losses
beyond your initial investment.
When you day trade with funds borrowed from a firm or someone
else, you can lose more than the funds you originally placed
at risk. A decline in the value of the securities that are
purchased may require you to provide additional funds to the
firm to avoid the forced sale of those securities or other
securities in your account. Short selling as part of your
day-trading strategy also may lead to extraordinary losses,
because you may have to purchase a stock at a very high price
in order to cover a short position.
Potential Registration Requirements.
Persons providing investment advice for others or managing
securities accounts for others may need to register as either
an "Investment Advisor" under the Investment Advisors
Act of 1940 or as a "Broker" or "Dealer" under
the Securities Exchange Act of 1934. Such activities may
also trigger state registration requirements.
Market Data Disclaimer.
NobleTrading website and software platforms present information
and pricing data to individuals and organizations that is
thought to be reliable and accurate. Such information must
be interpreted by you to be meaningful. By your use, you acknowledge
that the research information provided herein is proprietary.
NobleTrading is responsible for following client instructions
for securities transactions in a timely manner. However, system
access and trade execution times may vary due to a variety
of factors, including trading volumes, market conditions,
order imbalances, software/hardware problems, system capacity
limitations, and other factors beyond our control. Therefore,
you acknowledge and agree that the disseminating parties,
including NobleTrading, do not guarantee the timeliness, sequence,
and accuracy of the market data or any other information available
through this service.
Additionally, you agree that NobleTrading, Inc. shall not
be liable for any inaccuracy, omission, error or delay or
interruption in transmission due to any negligent act or omission
by any disseminating party, including NobleTrading due to
any “force majeure”, including power, equipment
or software failure or malfunction.
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