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Day Trading Risk Disclosure
 
   

Day Trading Risk Disclosure

Day trading can be extremely risky.

Day trading generally is not appropriate for someone of limited resources and limited investment or trading experience and low risk tolerance. You should be prepared to lose all of the funds that you use for day trading. In particular, you should not fund day-trading activities with retirement savings, student loans, second mortgages, emergency funds, funds set aside for purposes such as education or home ownership, or funds required to meet your living expenses. Further, certain evidence indicates that an investment of less than $50,000 will significantly impair the ability of a day trader to make a profit. Of course, an investment of $50,000 or more will in no way guarantee success. >

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.

 

 

Day Trading Risk Disclosure
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The financial risks inherent in electronic trading can be substantial. Periods of market volatility or systems delays may adversely influence trading-related services. And, not all securities, products or services are available in all U. S. states or countries. Therefore, you should consider whether electronic trading is compatible with your individual circumstances and financial resources. Also, extended hours trading entails additional risks such as lower liquidity, higher volatility, wider spreads, more rapidly changing prices, and the like. Nothing herein should be deemed to be an offer or solicitation of securities, products or services in any jurisdiction in which electronic trading brokerage services are not properly licensed. SIPC insurance does not apply to futures or forex business.
*10 Free trades must be completed within 30 days of account funding. This offer applies to accounts that open with a minimum of $5000. Each trade consists of a single buy, a single sell or a single short sale. Free trades apply only to equity orders in the Plan A schedule, and do not include options or futures trades. Free trades do not include any applicable ECN fees.


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