Feeds

Day traders get stiff warning

FSA cautions over get rich quick dreams

  • alert
  • submit to reddit

Reducing security risks from open source software

Online investors looking for a quick buck have been told to take care or risk losing their shirt. The warning was delivered by the Financial Services Authority (FSA) in the wake of a massive increase in the volume of share dealing by private investors. It's the second warning the FSA has dished out about online trading and Internet stocks in as many months. In a message directed at consumers, the FSA said the upsurge in demand was partly due to a number of investors new to the market, many of whom are particularly interested in smaller, new technology companies. Investors must recognise that these smaller stocks, by their nature, can often be illiquid and thus subject to volatile price movements, the FSA said. Christine Farnish, of the FSA, said: "Consumers investing their money in smaller company shares need to know that the prices of those shares can be very volatile - both up and down. They need to think carefully about the risks involved before deciding what shares they buy and how many," she said. In October, Howard Davies, head of the FSA, warned investors about the hazards of day trading on the Internet. He said that only three out of 10 day traders in the US made any money, while the rest lost out. ® Related stories: FSA warns of Net trading dangers Finance watchdog calls for e-regulator status Cash Register

Eight steps to building an HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Bose says today IS F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.