There are only two kinds of day trader.  There is the institutional trader and the retail trader.

The Institutional trader, as the name suggests, works for someone in a financial institution.  This can give them advantages over the other type of trader because they have access to a vast array of resources such as tools and equipment and office staff who help them with the daily nitty gritty administration stuff.

They have access to office computers with the most up to date analytical and expensive software packages and they have pools of capital availabe to them.

Institutional traders also have access to large pockets of fresh fund inflows so that they can trade the market continuously.  They have dedicated and fast lines to data centres and exchanges.  All of which give them an edge in a highly competitive market.

The retail trader on the other hand is what is known as a private day trader.  These traders work for themselves or they are in small partnership with other traders.

Retail traders have to use their own capital to trade, but they can use their customers, or investors money to trade with too, however the amount they can trade has been restricted by law.  In some countires retail day traders are not allowed to advertise their services as financial advisors.

Before the advantages of technology in the form of communications, the internet and personal computers, all retails traders were institutional traders.  Technology has allowed online trading because of fantastic analytical tools.

Together with affordable commissions and improved regulations, retail traders are able to make a success of themselves without the back up of large, corporate institutions.