Nasdaq's growling decline raises day-trading worries.

Investment News, April, 2000 by Benjamin, Jeff

Bear market separates pros from tyros; are firms safe? With volatility not seen since the 1930s, the ferocious bear market in Nasdaq stocks is separating trigger-happy day traders from the mere wannabes. The market is also raising regulatory concerns about the "safety and soundness" of day trading firms in light of the volume and volatility, says John Dellova, head of the regulatory consulting practice of Deloitte & Touche LLP in Wilton, Conn.

That makes the slight downward trend in the number of online traders practicing high-turnover investing significant, especially since the number of transactions per trader is going up, according to Gomez Advisors, an e-commerce research firm in Lincoln, Mass. "As the activity in the market gets more...

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