About Day Trading Firms

Video Transcript

"This is John Pinelli, financial representative and today we're going to be talking about day trading firms. Day trading firms are companies or groups of individuals that work together collectively to act as a day trading entity to participate in day trading which may involve things like stocks, options, futures, futures on commodities or also currency exchange as well. Now these people or these groups are taking research that they have developed in house and they are trying to generate significant amounts of returns within that single day. Large companies have groups of individuals within their investment teams that are generally specialized in these areas. Some of the even major mutual funds companies such as Vangaurd or Fidelity or American Funds or any of the major mutual funds companies will generally have a group that does participate in that sort of riskier trading. Well on the other hand they'll also have groups that do participate in lower risk investments as well. So you do have some of these major players out there that are participating in this sort of investment strategy. They have the advantage of years and years of experience and tons of research on their hands to make these important decisions. But at the same rate, there's a ton of money that's on the line when they're making these investment choices and decisions and these people are generally under a lot of pressure and risk. So something to consider when making day trades is that you're up against some of these guys who are making these trades who really, really know what they're doing, have a ton of research, the time, the resources, the money to make these sort of investments. So this has been John Pinelli talking to you today about day trading firms."