April Trading Journals

Discussion in 'Journals' started by Hitman, Mar 29, 2002.

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  1. Hitman


    ***Let's take Hitman's example (just for clarification. Yesterday your team did approximately 12,000 apiece.***

    Where did you get this math from? New guys do very little and more experienced guys do a lot more, new guys have higher rates and more experienced guys have much lower rates.

    I have shown complete formulas to show people how a newbie doing 2000 shares a day (that's 10 trades a day via 100 shares which is the typical size they should be doing) will NOT pay any more money than Bright once you factor in desk fees despite of the fact that they have no capital contribution nor experience.

    ***(Note: the example of 1.8 cents came from an existing trader in training)***

    The highest rate of anyone on my team paying right now is 1.3, and he trades 100 shares, get your facts straight before you bash away.

    Bright CAN NOT afford to back its traders like Worldco does because Bright CAN NOT AFFORD TO EAT THE INITIAL LOSSES, pure and simple. It is an inferior business model due to the lack of financial strength, nothing more than the full service version of IB, because Bright takes ZERO risk from its traders.

    BTW, Echo has the same business model as Bright.
    #51     Apr 5, 2002

  2. ROFL...Come on Hitman, we give our traders our balance sheet, to show how we keep plenty of "owners capital' to protect the traders. Have you seen yours? How you can think that "eating losses" is a good business model simply doesn't speak too well for either you or the firm. Why don't you just show your financials to everyone?
    (You show me yours, I've already shown mine)....but, again, keep it nice...don't get so defensive.

    And, besides, we would rather spend the resources teaching our traders to be profitable than "eating losses" -- and you know damn well that the firms who used to back traders have pretty much given up on it.

    I don't need to defend a 40% average growth for 10+ years....so, just stick to the facts, and show us the financials.
    #52     Apr 5, 2002
  3. Hitman


    >Have you seen yours?

    Yes, you post yours on the web I will post ours.

    >How you can think that "eating losses" is a good business model simply doesn't speak too well for either you or the firm.

    It is called the confidence in our ability to produce enough profitable traders, it is called giving everyone a chance whether they have 25K to blow or not.

    >you know damn well that the firms who used to back traders have pretty much given up on it.

    We are still doing it every single day.

    >I don't need to defend a 40% average growth for 10+ years....so, just stick to the facts, and show us the financials.

    How many traders does Bright have? Even with the amazing growth we still rank ahead of you in term of numbers of traders, and there is strength in numbers in that we can go as low as (or even lower than) half a cent a share something Bright can't dream of.
    #53     Apr 5, 2002
  4. ... and the gauntlet is thrown.
    #54     Apr 5, 2002
  5. For Release:
    Contact: Wednesday, January 9, 2002
    Michael Shokouhi

    NASD Regulation Fines and Censures Worldco, LLC and Former Principal for Day Trading Margin Violations

    Washington, D.C.—NASD Regulation, Inc. today announced that it censured and fined Worldco, LLC of New York City $175,000 for violating NASD day trading rules. Additionally, NASD Regulation announced that Worldco's former Chief Financial Officer, Terry T. Maloney, was censured and fined together with the firm, an additional $15,000 for the violations.

    NASD Regulation found that from October 1998 through March 2000, Worldco failed to adequately monitor, calculate and enforce NASD day trading margin requirements for a prime brokerage account of an institutional customer. Worldco cleared and financed transactions in that customer's account.

    NASD Regulation found that Worldco failed to monitor and calculate whether the account, which engaged in extensive day trading, exceeded day trading buying power. As a result, Worldco was not able to determine whether the account had sufficient equity, and whether a margin call needed to be issued. It was found that Worldco, acting through Maloney, who was responsible for ensuring the firm's compliance with day trading margin rules, violated NASD rules.

    In a typical prime brokerage account, an institutional investor will execute trades with various broker-dealers, and the trades will be aggregated in the prime brokerage account for the purpose of clearance and settlement. The clearing firm is responsible for ensuring that the prime brokerage account is maintained pursuant to the requirements of Regulation T and applicable Self Regulatory Organization margin rules. NASD rules require, among other things, that a firm ensure that a customer's account maintains sufficient equity, and in the case of a deficiency, require that the customer provide additional cash or securities to meet any deficiency.

    As a part of the settlement with NASD Regulation, Worldco and Maloney neither admitted nor denied NASD Regulation's findings.

    Investors can obtain more information about NASD Regulation as well as the disciplinary record of any NASD-registered broker or brokerage firm by calling (800) 289-9999, or by sending an e-mail through NASD Regulation's Web Site, www.nasdr.com.

    The National Association of Securities Dealers, Inc. (NASD) is the largest securities-industry, self-regulatory organization in the United States. It is the parent of NASD Regulation, Inc., the American Stock Exchange, LLC and NASD Dispute Resolution, Inc. For more information about the NASD and its subsidiaries, please visit the following Web sites: www.nasd.com; www.nasdr.com; www.amex.com; www.nasdadr.com.
    #55     Apr 5, 2002
  6. Hitman


    FREE advertisement.
    #56     Apr 5, 2002
    #57     Apr 5, 2002
  8. $150k for a slam :p
    #58     Apr 5, 2002
  9. I am putting my money on Don, experience counts.
    #59     Apr 5, 2002
  10. Treykool


    This is peanuts compared to what the big guys (Goldman, Merrill, Morgan) are getting fined for on a DAILY basis. Anyway, if you actually have read the article, you would have noticed that it has nothing to do with their proprietary trading arm. I agree with Hitman, it is free advertisement ($150k is pocket cash for a firm the size of Worldco).

    Nice try TraderD007...you must be a newbie.

    #60     Apr 5, 2002
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