NASAA Day Trading Report
NASAA in 1999 issued an extensive reportbased on a seven-month investigation of the day trading industry. The report, the first of its kind, catalogued problems encountered in the day trading industry, including misleading marketing, lax supervision and highly questionable loan schemes.
The report concluded by calling on day trading firms to do a better job of screening potential customers and disclosing the substantial risks of day trading. The 46-page report urged all securities regulators to step up inspection of day trading firms and, where appropriate, bring more enforcement actions. The report also contained a list of day-trading firmsand an independent analysisof a sampling of accounts at a day trading firm, All-Tech Investment Group, which found that 70 percent of customers lost money.
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