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).