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Dow 10K, just another day
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March 29, 1999: 6:11 p.m. ET
What reaching five-digit milestone and advent of day traders say about each other
From Correspondent Bruce Francis
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NEW YORK (CNNfn) - As the Dow has risen from 9,000 to 10,000, so has the profile and influence of day traders and online trading.
In this fast-moving market, day traders have the daunting task of trying to stay one step ahead, which means the Dow 10,000 milestone is just a blip on their screen.
"It does create a certain amount of volatility, which is good for us, but the number again is insignificant to us whether it's 10,000, 11,000 or 9,000. It's just a number," said day trader Richard Wolff of Equity Trading.
That's partly because day traders buy and sell a stock several times a day . . . and rarely end the day with any shares in their portfolios.
Advocates say this end-of-the-century passion may well become a national pastime.
"I have a feeling that there are going to be securities trading offices on every street corner in every town in America as the years go on," said Ronald Schear, CEO of Carlin Financial Group.
Growing influence at the slot machine
Day traders are the poster children for the casino-like atmosphere that has characterized the Dow's rise to 10,000.
It's hard to say exactly how much market volume is generated by day trading. CS First Boston estimates that in the fourth quarter of 1998, one out of seven trades was executed online, although, of course, many of those trades involved long-term positions.
And during that time online trading grew twice as fast as that on Nasdaq and 22 times faster than trading on the New York Stock Exchange.
"The advent of the new communications system, which is online, allows the individual consumer to have more information faster … at less expense than they have ever had before. This gives them the confidence and sophistication to manage their own money," said Joe Ricketts, chairman and co-CEO of Ameritrade.
Certainly, the Dow's rise to 10,000 has been one of the factors luring more people to the potential riches of day trading. But it's not for everyone, some traders say. Especially not for those who, in the words of one pro, "confuse brains with a bull market." 
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