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DAY TRADING

Day-Trading Risk Disclosure Statement

You should consider the following points before engaging in a day-trading strategy. For purposes of this notice, a “day-trading strategy” means an overall trading strategy characterized by the regular transmission by a customer of intra-day orders to effect both purchase and sale transactions in the same security or securities.

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Day trading can be extremely risky.


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.

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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.

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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.

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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.

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Day trading will generate substantial commissions, even if the per trade cost is low.


Day trading involves aggressive trading, and generally you will pay commissions on each trade. The total daily commissions that you pay on your trades will add to your losses or significantly reduce your earnings. For instance, assuming that a trade costs $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.

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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.

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Potential Registration Requirements.


Persons providing investment advice for others or managing securities accounts for others may need to register as either an “Investment Adviser” under the Investment Advisers Act of 1940 or as a “Broker” or “Dealer” under the Securities Exchange Act of 1934. Such activities may also trigger state registration requirements.

Cambria Capital, LLC.

 

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Regulation A+ offerings have two phases – a pre-qualification phase and a post-qualification phase. Qualification is the term used by the SEC to indicate that the offering has been reviewed by the SEC and securities may be sold. During the pre-qualification phase, you may reserve securities to be purchased at a later date. All reservations are non-binding. A company will only be able to make sales of securities to you after it has filed an offering statement with the SEC and the SEC has qualified the offering statement. The Information in that offering statement will be more complete than the information that the company is providing to you prior to qualification and it could differ in important ways. You must read the offering statement and documents filed with the SEC before investing in any of the companies listed on our website. Unless the offering statement has been qualified, no money or other consideration is being solicited, and if sent, will not be accepted. No sales will be made or commitments to purchase accepted until the offering statement is qualified. 

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Although the information provided to you on this site is obtained or compiled from sources we believe to be reliable, the content of this website is provided “as is" without warranty of any kind (either express or implied). 

Financial products listed on this website are only available to residents in the states where Cambria is registered. 

Neither the SEC nor any state regulator or other regulatory body has passed upon the merits of or given its approval to the securities, the terms of the offerings, or the accuracy or completeness of any offering materials or information posted on the site. 

Investments in Regulation A+ offerings are speculative and may involve a high degree of risk. Investors may receive illiquid stock that may have little to no secondary market. There can be no assurance the valuation is accurate or in line with the market or industry valuations. 

Securities sold through private placements are not publicly traded and are intended for investors who do not have a need for a liquid investment. Additionally, investors in private placements will receive restricted stock that will be subject to holding period requirements. 
 

Companies offering securities in Regulation A offerings and private placements tend to be in the earlier stages of development and have not yet been fully tested in the public marketplace. Investing in Regulation A+ offerings and private placements requires high risk tolerance, low liquidity concerns, and long-term commitments. Investors must be able to afford to lose their entire investment.

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