Professional Day traders are divided into two groups: those who work for a large institution and those who work alone, although they can do both. Many who work for the large institutions and the ones who trade for a living. This is because these people have access to some things that individual trader do not. Those benefits are: large amount of leverage and capital, direct line to the dealing desk, and high priced analytical software. These special resources allow them to capitalize on less risky day trades earlier than the individual trader. The individual trader usually manage the money of other peopl and their own and few have “dealing desk” access. But they do have their own type of benefit which is strong times to a brokerage because of the big amounts of commission spending. Unfortunately, this limited scope of resources does stop them from competing with the day traders of the institutions. So they are left to take more risks. To create adequate profits on such small price movements in highly liquid stocks, the individual traders generally day trade using technical analysis and swing trades, which they combined with some leverage.
