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Day Traders Jump Back Into the Game

Low interest rates entice small, leveraged players

By Kevin Spak, Newser Staff

Posted Sep 16, 2009 8:07 AM CDT

(Newser) – Trading volume is rising on Wall Street, but it’s not because of renewed confidence from long-term investors. The surge has instead been powered by a 14% jump from online brokerages like Charles Schwab and TD Ameritrade, and much of the money has been funneled into volatile parts of the market. Day traders, in other words, are back, trying to ride the latest market rally, the Wall Street Journal reports.

Much of this trading is coming not from solo kitchen table dabblers, but from a new crop of small, professional day-trading firms running on borrowed cash. The current extremely low interest rates make it easy to finance these leveraged operations. But the added volatility had helped keep long-term individual investors away. There’s “a hunker-down mentality,” says one analyst, “in spite of the broad recovery.”

Traders work in the NYSE Amex trading floor on it's inaugural day at the New York Stock Exchange Monday, March 2, 2009. (AP Photo/Richard Drew)

Timothy A. Curley and other traders signal in the S&P 500 futures pit near the close of trading at the CME Group Tuesday, March 10, 2009, in Chicago. (AP Photo/M. Spencer Green)

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Day Traders Jump Back Into the Game

Low interest rates entice small, leveraged players

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Stocks Jump 400+ on Trio of Good News

Central banks and China make moves, private-sector employment jumps

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Falling futures mean we're not out of the woods

Bernanke Clarifies Stimulus Talk, Markets Tumble

Fed isn't ready to take action soon

Buffett: Japan Presents 'Buying Opportunity'

Country's 'economic future' unchanged, says investing guru

SEC Snooping Around Facebook, Twitter Trades

Booming private exchanges move social networks' shares

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OTHER STORIES ON OUR RADAR

investing • stock market • Wall Street • E*Trade • TD Ameritrade • Charles Schwab Corp • Leverage • traders

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Stocks Jump 400+ on Trio of Good News

Central banks and China make moves, private-sector employment jumps

Stock Rally Stutters

Falling futures mean we're not out of the woods

Bernanke Clarifies Stimulus Talk, Markets Tumble

Fed isn't ready to take action soon

Buffett: Japan Presents 'Buying Opportunity'

Country's 'economic future' unchanged, says investing guru

SEC Snooping Around Facebook, Twitter Trades

Booming private exchanges move social networks' shares

About Us

Site

Newser By Users

Community

Site Maps

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What is Newser?