Feeds

FSA warns of Net trading dangers

Only 30 per cent of day traders make money

  • alert
  • submit to reddit

Intelligent flash storage arrays

The head of the Financial Services Authority (FSA) is warning investors about the hazards of day trading on the Internet. Howard Davies, chairman of the UK persoanl finance industry regulator, said investors needed to be made aware of the risks associated with using the Internet to buy and sell shares on the same day, in the hope that such fast transactions will net a profit. He said that only three out of ten day traders in the US made any money, while the rest lost out. "Seventy per cent of day traders in the United States lose money and it is important that people are aware of the risks and understand the nature of the expenses they will need to cover before any possibility of making a profit," said Davies. "There is nothing illegal or unethical about day trading. But investors need to know what they are doing." He also warned companies and investors about the gossip and misinformation that circulates on the Net. Firms need to monitor chat rooms for unauthorised investment advice, or share ramping through suggestions or gossip, he said. "Investors need similarly to be on the alert. They should beware of stocks which appear to be being 'promoted', when the interests of the promoter are unclear," he said. In July, US investor Mark Barton ran amok killing his wife and two children before shooting dead nine other people at the Atlanta offices of day traders Momentum Securities after he had suffered substantial losses. ® For more financial lead for your Net Smith & Wesson, tune into Cash Register and turn on to our daily Net Finance News

Choosing a cloud hosting partner with confidence

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.