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SMF TRADING DESK 1-702-685-0772
SMF FAX LINE 1-702-685-0773
StopDayTrading.Com
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StockMarketFunding,
LLC
2300 W. Sahara Ave.
Suite 800
Las Vegas, 89102
WARNING:
YOUR DAY TRADING DOLLARS ARE AT RISK!
We are providing the
information below as a service to investors. It is
neither a legal interpretation, nor a statement of SEC
policy. If you have questions concerning the meaning or
application of a particular law or rule, please consult
with an attorney who specializes in securities law.
U.S. Securities
and Exchange Commission SEC
Day
traders rapidly buy and sell stocks throughout the day in the hope
that their stocks will continue climbing or falling in value for the
seconds to minutes they own the stock, allowing them to lock in
quick profits. Day traders usually buy on borrowed money, hoping
that they will reap higher profits through leverage, but running the
risk of higher losses too.
While day trading is neither illegal nor is it unethical, it can be
highly risky. Most individual investors do not have the wealth, the
time, or the temperament to make money and to sustain the
devastating losses that day trading can bring.
Here are some of the facts that every
investor should know about day trading:
Be prepared to suffer severe
financial losses
Day traders typically suffer severe financial losses in their
first months of trading, and many never graduate to profit-making
status. Given these outcomes, it's clear: day traders should only
risk money they can afford to lose. They should never use money
they will need for daily living expenses, retirement, take out a
second mortgage, or use their student loan money for day trading.
Day traders do not "invest"
Day traders sit in front of computer screens and look for a stock
that is either moving up or down in value. They want to ride the
momentum of the stock and get out of the stock before it changes
course. They do not know for certain how the stock will move, they
are hoping that it will move in one direction, either up or down
in value. True day traders do not own any stocks overnight because
of the extreme risk that prices will change radically from one day
to the next, leading to large losses.
Day trading is an extremely
stressful and expensive full-time job
Day traders must watch the market continuously during the day at
their computer terminals. It's extremely difficult and demands
great concentration to watch dozens of ticker quotes and price
fluctuations to spot market trends. Day traders also have high
expenses, paying their firms large amounts in commissions, for
training, and for computers. Any day trader should know up front
how much they need to make to cover expenses and break even.
Day traders depend heavily on
borrowing money or buying stocks on margin
Borrowing money to trade in stocks is always a risky business. Day
trading strategies demand using the leverage of borrowed money to
make profits. This is why many day traders lose all their money
and may end up in debt as well. Day traders should understand how
margin works, how much time they'll have to meet a margin call,
and the potential for getting in over their heads.
Don't believe claims of easy
profits
Don't believe advertising claims that promise quick and sure
profits from day trading. Before you start trading with a firm,
make sure you know how many clients have lost money and how many
have made profits. If the firm does not know, or will not tell
you, think twice about the risks you take in the face of
ignorance.
Watch out for "hot tips" and
"expert advice" from newsletters and websites catering to day
traders
Some websites have sought to profit from day traders by offering
them hot tips and stock picks for a fee. Once again, don't believe
any claims that trumpet the easy profits of day trading. Check out
these sources thoroughly and ask them if they have been paid to
make their recommendations.
Remember that "educational"
seminars, classes, and books about day trading may not be
objective
Find out whether a seminar speaker, an instructor teaching a
class, or an author of a publication about day trading stands to
profit if you start day trading.
Check out day trading firms
with your state securities regulator
Like all broker-dealers, day trading firms must register with the
SEC and the states in which they do business. Confirm registration
by calling your state securities regulator and at the same time
ask if the firm has a record of problems with regulators or their
customers. You can find the telephone number for your state
securities regulator in the government section of your phone book
or by calling the North American Securities Administrators
Association at (202) 737-0900.
StockMarketFunding.com, LLC is not a registered broker-dealer,
but rather works in coordination with fully licensed
broker-dealers, SIPC-insured clearing firms, and private
trading firms to provide licensed and non-licensed clients
with access to career trading programs and direct access
trading capabilities. Our firm and our network affiliates
strongly recommend that all clients fully read and acknowledge
all SEC risk disclosure statements available on our site and
our affiliate broker-dealer websites prior to engaging in any
live trading activity, and acquire a solid understanding of
the risks inherent in all types of stock and option trading.