DAYTRADER TREND

March 4, 1999
		Now that anyone can trade stocks on the Internet, a hefty batch of "day traders" are becoming a force to be reckoned with for seasoned traders. Ray Johns of Daytraders.com and Marc Beauchamp, of North American Securities Administrators Association, Inc., answer your questions.

What is a day trader? How many day traders are there? What does someone have to do to become a day trader? Should I become a day trader? Do day traders influence the market? Where can I learn more?     Feb. 4, 1999: The Internet Stocks index page. Daytraders.com North American Securities Administrators Association Browse the NewsHour's coverage of Cyberspace Browse the NewsHour's coverage of Business.	Although it began as an academic resource, the Internet has blossomed into an essential tool for business and recreation alike. We've grown accustomed to buying books or getting the latest news, but now, anyone with a modem can conduct their own stockmarket trades. These so-called "day traders" are said to be driving up the market significantly. They research their stocks using the Internet, TV and newspapers. They also participate in "chat sessions" for advice and support with other day traders. No one knows how many day traders exist, but experts estimate that they have contributed significantly to tech companies' mushrooming stock prices in the last few years. For example, stock for Yahoo!, an online search engine, costs 1000% more than it did last year. Amazon.com, the online bookseller, is up 1500%. Are day traders successful simply because we are in an age of a bull market? David Forrest of the online investment firm Motley Fool says yes. "For every huge volatile period on the up side, there's typically some smash in the face that wakes people up and says hey, you are not as smart as you think you are and you've got to think twice about this." But many day traders insist that they are making enough money be able to handle a drop in the market and have quit their former jobs. How much of an impact do day traders have on the market? Are they a healthy addition to Wall Street? Are they informed enough to be inflating and lowering the price of stocks or are they an artificial boost? Ray Johns, senior market editor of Daytraders.com's morning stock market report, and Marc Beauchamp, spokesman of North American Securities Administrators Association, Inc., answer your questions.