Day Of Reckoning For Day Trading Firms?

Regulators, alleging fraud and other problems, are cracking down on the industry

The lure of quick profits from skyrocketing tech stocks was too much for Isaac Belbel and John L. Powell. The two friends, one an ex-broker and the other a former restaurant owner, spent the last year in front of computers in Watertown, Mass., at a branch office of All-Tech Investment Group Inc. They were executing rapid-fire trades on a daily basis in companies such as Dell Computer, Amazon.com, and K-tel. Their goal: to make money on small price swings in these volatile stocks.

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