The recent popularity of Day Trading is linked very closely to the technological and information revolution that is currently sweeping the country. The Internet is rapidly transforming an industry that has for many decades been dominated by a handful of well capitalized financial firms. Traditional rules and protocols which have been formulated to favor these large investment firms are being rapidly dismantled, and critical information, which is vital to effective decision making, is beginning to be diseminated to small investors.

A new generation of electronic trading and brokerage companies is engaged in hastily harnessing the available information resources and trading mechanisms and making them available to a growing army of small investors. These small investors, eager to take advantage of this shift in power are embracing the new technology and establishing a formidable presence in the market - where none existed before.

While some large firms initially underestimated the potential impact of this new investment paradigm, few are denying its momentum today. At last count some 25% of all retail stock trades were executed through on-line brokerage accounts - a staggering share of the total market considering the relative youth of this movement.

Electronic trading has clearly served to lower transaction costs and improve access to information. By almost all estimates, electronic trading is here to stay. And where there are real-time trading opportunities, there will always be Day Traders looking to exploit new found market opportunities.

What are the Risks of Day Trading?