Prior to opening a trading account the FINRA requires investors
to read several risk disclosure statements. After you have
read these risk disclosures please click on accept or decline
at the bottom of the page.
Disclosure 1 of 3
FINRA Risk Disclosure Statement.
Day trading generally is not appropriate for someone of limited
resources and limited investment or trading experience and
low risk tolerance. You should be prepared to lose all of
the funds that you use for day trading. In particular, you
should not fund day-trading activities with retirement savings,
student loans, second mortgages, emergency funds, funds set
aside for purposes such as education or home ownership, or
funds required to meet your living expenses. Further, certain
evidence indicates that an investment of less than $50,000
will significantly impair the ability of a day trader to make
a profit. Of course, an investment of $50,000 or more will
in no way guarantee success.
Be cautious of claims of large profits from day trading.
You should be wary of advertisements or other statements
that emphasize the potential for large profits in day trading.
Day trading can also lead to large and immediate financial
losses.
Day trading requires knowledge of securities markets.
Day trading requires in-depth knowledge of the securities
markets and trading techniques and strategies. In attempting
to profit through day trading, you must compete with professional,
licensed traders employed by securities firms. You should
have appropriate experience before engaging in day trading.
Day trading requires knowledge of a firm's operations.
You should be familiar with a securities firm's business
practices, including the operation of the firm's order execution
systems and procedures. Under certain market conditions, you
may find it difficult or impossible to liquidate a position
quickly at a reasonable price. This can occur, for example,
when the market for a stock suddenly drops, or if trading
is halted due to recent news events or unusual trading activity.
The more volatile a stock is, the greater the likelihood that
problems may be encountered in executing a transaction. In
addition to normal market risks, you may experience losses
due to system failures.
Day trading will generate substantial commissions, even
if the per trade cost is low.
[Day trading may result in your paying large commissions.]
Day trading involves [may require you to trade your account]
aggressive trading, and generally you will [may] pay commissions
on each trade. The total daily commissions that you pay on
your trades will [may] add to your losses or significantly
reduce your earnings. For instance, assuming that a trade
cost $16 and an average of 29 transactions are conducted per
day, an investor would need to generate an annual profit of
$111,360 just to cover commission expenses.
Day trading on margin or short selling may result in losses
beyond your initial investment.
When you day trade with funds borrowed from a firm or someone
else, you can lose more than the funds you originally placed
at risk. A decline in the value of the securities that are
purchased may require you to provide additional funds to the
firm to avoid the forced sale of those securities or other
securities in your account. Short selling as part of your
day-trading strategy also may lead to extraordinary losses,
because you may have to purchase a stock at a very high price
in order to cover a short position.
Potential Registration Requirements.
Persons providing investment advice for others or managing
the securities accounts for others may need to register as
either an "Investment Advisor" under the Investment Advisors
Act of 1940 or as a "Broker" or "Dealer" under the Securities
Exchange Act of 1934. Such activities may also trigger state
registration requirement.
Online Access Disclosure
Customer understands and acknowledges that Global American
Investments Inc. (GAI) specializes in offering discount self-directed
electronic day-trading and on-line level one (retail) access
to the market.
As such, GAI is not a full service regular retail stock brokerage
operation.
Customer will enter his/her own trades through the Internet.
In emergencies, Customer can call the GAI order desk or call
his/her registered representative who will arrange to enter
the trade on behalf of Customer.
Neither GAI, nor it's personnel will give investment or tax
advice, nor advise on trading strategies, and customer may
not make any reliance on any such advice should Customer request
such advice from any person at GAI.
Customer is responsible for monitoring his/her own trading
activities. Customer acknowledges and agrees that all daytrading
risk and disclosure statements are binding on level one and
IRA accounts. Customer is to review all his/her trade confirms,
daily positions including margin, and monthly statements.
Neither GAI, nor its personnel, are responsible for Customers
trading losses. It is not GAI's nor it's personnel’s' responsibility
to monitor Customers' account for losses or unusual activity.
Customer may not make reliance on GAI's monitoring of his/her
account, as conditions beyond GAI's control such as but not
limited to market volatility, internet conditions, technical
equipment failure, power outages, terrorism, etc. may preclude
this from happening at all. Since GAI is a discount operation,
where Customer enters and directs his/her own trading and
account activities.
If a discrepancy or problem is noticed customer is to immediately
notify his /her registered representative, and is to follow
up with a fax to the Firm Compliance Officer at 909-396-8899.
Failure to notify the firm immediately constitutes customer's
acceptance that Customer's account is in order.
The firm's Compliance Officer can also be contacted via telephone
at 949-396-8899 & Fax: 909-396-1883.
Chinese speaking personnel are available if a translation
is required.
Customer undertakes to visit the GAI website and review the
posted disclaimers and risk disclosures.
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