In a coordinated crackdown on deceptive day trading promotions, the Federal Trade Commission, Commodity Futures Trading Commission, and Securities and Exchange Commission have halted the claims of 14 online firms that promised to share the secrets of making easy money with little risk, using their day trading strategies. Day traders attempt to make money buying and selling stocks or other investments over a very short time period - usually in the same day.
Day trading is a high risk venture that's likely to leave investors high and dry.
If you're considering becoming a day trader, don't give up your day job. They also claimed that their systems minimize those risks. State securities regulators in Massachusetts and Washington analyzed accounts at several day trading firms and found that very few day traders actually make money. Anyone who tries to tell you otherwise isn't being straight with you. Skolnik praised today's actions, noting that day trading schools and seminars often fall outside the usual jurisdiction of securities regulators, who focus on registered brokerage and investment advisory firms and the sale of investments.