REAL WORLD
Becoming A Professional Stock Trader
by Don Bright
Are you interested in taking the plunge? Here are some
of the things that you should know.
It's important to identify the differences between professional trading
and retail trading, particularly the need for Series 7 licensing. A couple
of years ago, the powers that be decided that to protect both the public
and professional traders, a method of distinguishing between the two had
to be put into place. After much ado, the Securities and Exchange Commission
(SEC) determined that an industry-wide exam would be utilized for the distinction.
Recall, too, the major advantages of becoming a professional trader
with a member firm of an exchange: the use of others' capital, the elimination
of ticket charges along with the lower overall costs make it a different
world than is offered to the retail customer of a brokerage firm. These
differences directly affect your bottom line to such an extent that in
most cases it makes the difference between profit and loss (yes, most cases).
Don Bright is with Bright Trading (www.stocktrading.com),
a professional equity corporation with offices around the US.
Excerpted from an article originally published in the
June 2001 issue of Technical Analysis of STOCKS & COMMODITIES magazine.
All rights reserved. © Copyright 2001, Technical Analysis, Inc.
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