Margin Madness Fosters Dangerous Daytrading

It may start with a television commercial, one lucky stock pick or dreams of easy money. The risk of losing it all may be no more than an afterthought that comes when the money is gone.

But members of the daytrading community say their work can be extremely costly for beginners with little market knowledge, money in their pockets and the promise of margin loans. Daytrading strategies -- buying or selling on movements as small as 1/8 -- don't necessarily end in large losses, but experts say it takes many months to learn the business before beginners can get close to making money.

"If you go in with no clue how to do it, it's no different than betting on red or black," says Dave Floyd, a partner at Web site Careerdaytrader.com and a full-time trader for the past six years in San Diego. ...