The markets turned sour and the profits turned south. Not that that comes as any surprise. A study conducted by the North American Securities Administrators Association found that only 11.5 percent of the traders they tracked for a month made any money. Family fortunes have been lost by day traders and, in one well-publicized event in Atlanta, the tragedy of day trading has proven fatal. The Connecticut Council on Problem Gambling considers day trading to be no different from placing a bet at a casino or racetrack.
Most people can be recreational gamblers and have no problem.
Others become addicted. The Securities and Exchange Commission has been very hard on companies that run day trading operations. In particular, they have cracked down on companies that suggest easy profits and a glamorous lifestyle. These firms are not under order to explain the risks associated with gambling on Wall Street and screen clients to determine if a day-trading strategy is appropriate for that individual. Of course, casinos and racetracks don't check out every person who places a bet to see if they can afford to lose the money.