It is important to understand the potential risks before opening a daytrading account. Please read information available from the Daytrading University, the SEC, and NASD and other sources.

Link: see the section on risk and daytrading at the SEC, Arthur Levitt's testimony and another link here at the SEC

Our statement on daytrading risks:

Professional daytrading is a highly speculative and challenging endeavor. You are trading against the best in the world, most of whom are better-capitalized and have more experience than you do. They have the best professional trading tools available to use, and have undergone years of training.

Many new traders go broke trying to learn how to daytrade. Estimates are as high as 80-90%. Some people make a living daytrading. Few make a fortune. Most go broke. If I were to try trading all over again, I would have told myself to take at least 12-16 months papertrading only (eg with a cybertrader.com simulator) before risking money in the markets. There's a lot of detailed information that needs to be learned, and most people are too impatient to learn it, to treat it like any other business or vocation. Take your time to learn how to trade. The markets will always be there, your capital will not.

The odds are clearly against your success in this endeavor, and we certainly do not make performance claims that you will make any money using our methods. You will probably still lose money while learning how to trade.

We hope to help you with your learning curve, to pick up all the information we have developed over the years in trading Nasdaq tech stocks. Your goal should be to add conservative, careful trading habits to your skills.

We believe that it is important to educate yourself, read the books, and develop your skills before risking real money in the marketplace. Daytrading is hard work, it is not a casino, although losing traders may treat it like one. It involves making high-percentage trades based on momentum, knowledge of the market, and relative buying and selling strength for your stock at the moment you purchase hundreds of shares of it. Not to mention the arsenal of technical analysis and trading tools that must become "second nature" to you if you are to succeed.

You must be decisive to be a good trader. Nobody became wealthy just watching stocks go up and down. It is our goal at the Daytrading University to provide you with information and knowledge that may help you to become a more successful trader.

There is no guarantee that if you apply our methods you will earn money; in fact you could certainly still lose some or all of your capital, or have other undesired outcomes. We are not a licensed broker or registered investment advisor. It is highly recommended that you consult with a qualified financial advisor prior to buying or selling any security. You assume full responsibility for all of your trade decisions. We try to help you learn by providing knowledge and techniques that you can use to hopefully become more successful in your day trading efforts.

We wish you the best in your trading. Remember, the odds are not in your favor starting down this difficult path. We would like to help you preserve your capital, learn how daytrading works, and reach your goals.

Good trading!