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Direct Access Electronic Trading does not guarantee profitability. What it does guarantee is that you will be able to interact in the market in an efficient and timely fashion. If you choose to buy, you can do so immediately; if you want to sell, you can do so immediately. DAET allows you to turn your ideas into actions (consummated trades) and your actions into profits (or losses). DAET allows you to maximize your pricing in between the spread. You have the ability to advertise a better price to the entire marketplacethereby allowing you the opportunity to make a little more or lose a little less. Remember, in day trading fractions countthey count a lot! |
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The concept of risk is familiar to all of us. Basically, the question of risk involves how far you are willing to lean over the edge of the carousel in order to grab the brass ring. Risk and reward depend upon the circumstances. A trader is one who will take a calculated chance on one less fact than anyone else. The decisive quality separating the true trader from the remainder of the populace is the willingness to take calculated risks. For this reason an understanding of risks and risk taking is important for the potential trader. The amount of risk you are willing to take depends upon the situation, other options, and the amount of capital you can afford to lose. |
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Two basic risks exist in DAET. The first risk is a market risk. If the market price moves in the opposite direction of where you want it to go, you could lose money on the trade. The second risk is an execution risk. This is the risk of the inability to execute the trade at the desired price, or at all. The execution risk is seldom discussed in the investment community because your broker doesn't want you to know that his or her firm may not be willing or able to execute your trade at what you deem to be an appropriate price. |
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Market risk is normally controllable if you employ proper discipline and diligence. We all accept reasonable market risk |
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