Wishing you all the best, a year full of good trades, health and girls( woman in case you are a little older)
bright's training seems interesting to me. But I would like to know what are the risk limits for new traders. Is there a restricted list for holding stocks over night? And is initial money up held for a year?
Don, could you give us some #s to illustrate how good years compare to not so good ones for your traders? for example, how much an average new trader takes home? how much an average seasoned trader takes home during those periods? and what is the attrition rate (when traders quit) for new and seasoned traders in those years?
No firm is going to divulge those numbers for a number of privacy reasons. And even if they could those questions are impossible to answer...is Don going to go over the 400 traders and compute how each did each month now vs a year ago? What about those that left, are they making more or less than at their new firm? What if they're trading new or different strategies that be better or worse in these conditions. This question is no different than a non-trading friend coming up to you and asking, 'hey what does the average trader make?', 'well the average guy doesn't make anything'.
GGSAE is pretty much right. I can say that 2009 was not a good year overall. Our top guys made less, our medium guys made less, and yes, our newbies had a tough time. Our top traders seem to always make money, sometimes more, last year less. I wasn't kidding when I brought up sub-pennies, flash orders etc., as being part of the problem. I normally take the opinion that traders should take full responsibilty for their trading... but this last year has brought up unforseen hurdles. I'm optimistic about 2010, lower rates, and the new Joint Venture Program (where those who are serious enough to be trading 50K-100K or more shares per month) can have an additional account with Zero downside trading risk, 50/50 split with my brother. Automated so you can still do your regular trading. No haircut (3% annual fee for overnight capital use)... over 90 people registered for that so far, and we haven't even actually announced it to traders outside of Bright. I'll be posting more on this very soon. Don
Don, if i deposit 25K with you and do only OPG orders routed only to NYSE and only larger than 1000 shrs orders, will i get 0.003/shr even if my monthly volume <200K shrs? with 25K deposit how much BP will i get in terms of executed orders, 500K? what BP will i get for non-marketable OPG orders (will i be able to submit 5M worth of orders aiming at ~10% fill)? thanks!
First off, if you did the openings with 2000 shares you would defintely be over 200K per month which would put you at .005 for the first 1,000 on any order, and .003 for all shares above 1,000 on that order. Many use a $million or more with $25K (executed openings), and yes, depending on fill rate, you could send much more for openings. We slow traders down at about 30 to one overnight (hedged). Don
No hold on initial deposit. Risk limits vary depending on strategies engaged in. From 5 or 10 to one for naked overnights to 30 to one or more for hedged overnights. Don
Your joint venture club sounds like an investment opportunity... Trader puts up capital and bob bright overseas the automated trading and then profits are split 50/50. And then you say no downside risk? What if the JVC loses money and a partner wants his money back? Are you going to refund their initial deposit into the JVC and let the other traders/jvc partners absorb the loss? This sounds too good to be true. Becareful when you say NO DOWNSIDE RISK. Seems like you are opening yourself up for law suits up the ying yang.
I think you have it backwards. Traders who choose to, can open a second sub account with zero money in it. Bob will allow the account to trade unless it loses $10K. At each $10K profit target, the trader and Bob split profits, starting at 50/50 and getting better for the trader. The trader picks the pairs, does the homework etc. Just a way to augment a good traders income, and teach (with no risk) a struggling trader structure and discipline while they're getting their "normal" account making money too. Each member is his/her own entity, no actual "joint venture" - except "jointly" with Bob and the trader for that account. All the best, Don