The hype over technology obscures the importance of understanding thoroughly how the markets work, how brokerages and dealers make money, and how to place orders strategically. Though many people make rapid-fire trades in hopes of profiting from fluctuations in a stock's price, they often rely on the barest of price information. And mechanics aside, even the best-equipped day traders still are competing against institutional investors with more experience, money and inside knowledge. If you were to come out of school and go onto the racetrack with professionals, you would be blown away. You can't always get what you want Market orders can be filled at unexpected prices.
Limit orders can go unfilled.
Trade confirmations to investors are delayed. Cancellation orders get to the exchange floor or market-maker after trades are completed. And the problems are likely to be magnified on topsy-turvy days when investors can least afford delays. People need to have some understanding of fast-moving markets. . . .,'' said Discover President Tom O'Connell. Exasperated, he dumped his first online brokerage because he felt helpless once he e-mailed his orders.