Institutional Vs. Retail Day Trading

There are two main types of day trading, retail and institutional. These avenues serve different purposes in order to help groups and individuals make money. Learning about these different avenues of the market can assist you in your efforts to make a steady profit.

Institutional Day Trading

This person works for a financial institution such as a bank or investment firm. This type of trader usually has immediate access to more sophisticated trading tools. They also service larger accounts.
Institutional day trading is often done with the latest available analytical and statistical software. A large support team is usually involved in make trades of this type.
Advantages-People employed in this position have all the support they need. Furthermore, they answer to a boss who gives them a regular paycheck. People working in this position make quite a comfortable, steady living.
Disadvantages-The disadvantage of course is that they do not get to keep the majority of the profits. They receive a percentage of regular pay but the company for whom they work keeps the rest of the returns.

Retail Day Trader

Unlike an institutional day trader, the retail one works for him or herself. They use their own money and they are entitled to all returns on investments. They often hire out a broker whom they usually would pay on a commission basis. The type of broker with whom a retail day trader usually does business is a direct-access broker. This is how all trades are facilitated. Today this type of activity is done almost entirely online.
Advantages-People involved in the financial market in this capacity usually are able to reap greater rewards. They have a potential to make a higher profit and they are able to keep the gains for themselves.
Disadvantages-It is more risky because they have to use their own money and they do not necessarily have a wide range of support. (Although, they could get the support they need independently.) They may have more to lose and are not usually guaranteed a “steady paycheck” as if they were enrolled with a company.

Before you Trade

Seek all you can about the various investment opportunities before you begin day trading. The more knowledge and insight you gain from experienced investors the more likely you are to make the soundest decisions.
These may also require that you learn the jargon of a professional trader. It may also require you to seek your own help in support no matter what path you take.