Comments must be received by May 31, 1999. Before becoming effective, any rule change must be adopted by the NASD Regulation Board of Directors, may be reviewed by the NASD Board of Governors, and must be approved by the Securities and Exchange Commission. Text Of Proposed Rules Rule 2360. In making this determination, the member shall exercise diligence to ascertain the essential facts relative to the customer, including his or her financial situation, investment experience, and investment objectives. For purposes of this notice, day trading means the transmission by you of multiple intra-day electronic orders to effect both purchase and sale transactions in the same security or securities.
Day trading is extremely risky.
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 for current income to meet your living expenses. 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.