On July 29, 1999, Mark Barton, a 44-year old day trader, opened fire at two Atlanta brokerage firms, killing nine people and injuring thirteen before taking his own life. Barton had recently lost an estimated half a million dollars trading, according to The New York Times. Coincidentally, just a week and a half after the tragedy in Atlanta, the North American Securities Administrators Association (NASAA) released a study condemning the practice of day trading, finding that, of the 4,093 trades in 26 accounts analyzed, "seventy percent of the accounts lost money and were traded in a manner that realized a 100% Risk of Ruin (loss of all funds)." The study concluded, "It is absolutely clear that the average public investor should refrain from short-term trading." This week's In the News looks at the day trading industry and its effectiveness. The eight resources listed provide studies, recent news, background information, and commentary on day trading.
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