We have never kept 25% of our traders profits, as long as they were profitable and didn't let their account fall below basic limits. Now, I will have to leave this post up, and will now return Jeff's call. I think it is stupid and childish to continue this silly "contest"...just do what you can to try to "GROW THE INDUSTRY" so that we can all work together in a prosperous and healthy business climate (that was the tone of my brother's conversation with Jeff DeWitt). We have never solicited other people's traders, and I find that practice to be in poor taste. I said above that I was sorry for not reading the date of your mis-information, but it seems that you still are relying on perception rather than reality. How long do traders have to wait to get their money after they close their accouts with your firm? 1 year, right? That is what I am told by traders waiting for their money. Is this true?
Don, Many apologies if I had wrong information, the last thing I ever want to do is not relay the most up to date information about firms. I have my own internet message board site as well, and I get a lot of emails everyday saying different things about a lot of different firms, so some of the info I get is from those. If you ever want to check that out you can as well, it is http://communities.msn.com/rtharpsland . Again, the post that somehow popped up here was from the beginning of the year, I post so much I am having a hard time remembering it. But I think the context was two-fold: While Bright does not routinely "keep" 25% of a trader's profits, I was informed that they do in fact "hold" 25% of a trader's profits until the beginning of the next year. I believe you addressed this yourself as a way to help traders save for their taxes, no problem. One guy I talked to said that over the course of the year a few years ago his account dropped below $15,000 for five days. He then went on to make pretty good money for the year, but claimed that Bright actually did then keep the 25% of what he made because his account dropped below your minimums. Could this have happened, and are the minimums still the same? Or could you set me straight as to what they are? Just so you know, I have researched all the pro firms and would feel comfortable recommending any of them, including Bright. I try to not publicly favor Echo just because I trade there, in all my posts about po firms I mention all the firms in the same light, as you can see by looking back at previous posts. Also, in the article I wrote about Professional firms that appeared in numerous publications and is on the daytraders USA website at http://www.daytradersusa.com/tharp.html , I think you mentioned you saw it and printed it earlier, mentioned Bright and Echo an the other firms with the same regard, everything I try to do is based on helping traders find what is best for them and be informative, but not biased. Peace, Robert
There ya go! Peace and love! I find it a pity that Rob and Don don't see eye to eye... Rob's dad (Market Wizard) has taught me a lot through his works, and both Rob and Don have made some pretty informative posts on Elitetrader. Let's keep the acrimony down. So come on guys, peace!!!! P.S. All will be resolved peacefully if you, Don, can clarify what you mean when you say "We have never kept 25% of our traders profits, as long as they were profitable and didn't let their account fall below basic limits." in your 11.36am post. I infer from the above that there are certain circumstances under which you DO keep / hold 25% of a trader's profits. Moreover, are we talking about keeping profits or account capital (the former being a subset of a trader's total account capital).
I really don't understand why you hold 25% of the profits that a trader takes out. I've read your other posts that say it's for the trader's own good so he'll have money left to pay taxes. I've been in business for myself for many years and have never had to scrounge to pay taxes. I take the profits out of my company and put them in some secure investments like bonds/money markets to prevent this exact thing from happening. So why couldn't I do the same thing if I joined Bright? The money that you hold I could be getting interest on. Let's say I make $500,000 in a year and take out money regularly- well, that could give me a holding of $60,000 by the end of the year. If I'd been putting that 25% into a 6% govt fund for the entire time, let's average it to $30,000, then I could have made about an extra $1800. Why should it cost me an extra $150/mo to trade at Bright just because I'm profitable? Also, you mentioned it has been used to help traders who get themselves into trouble. I've always been fairly consistent and risk adverse and have not had problems even in a market that a lot of people are complaining about. So, why would I be penalized for what other people do? Anyway, that argument doesn't really hold water. Suppose I have an excellent January 2002-December 2002 and then get my 25% in January 2003. Then I have problems and promptly drive my account underwater. There's no 25% in January. It only helps if you get in trouble after you've accumulated profit. Would Bright waive the 25% requirement for a trader who knows how to save his money for taxes and doesn't get himself in trouble? It seems like most other things between Bright and some other firms are a 6-of-1, 1/2 dozen of another. But this is definitely a negative when compared to Echo that can be put in concrete dollars and cents.
Wow! Haven't seen a question this easy since the last episode of Who Wants To Be a Millionaire!!! So for the grand prize of $1800, is the answer: (a) Bright wants to bank the interest on this 25% themselves (b) Bright wants to keep as much of their trader's money in Bright's capital account as possible (c) Bright is applying the dreaded and intimidating "golden handcuffs," or (d) Who the hell knows? Don, can I use a lifeline to call you for the answer to this one? No?? OK then, I say (e): ALL OF THE ABOVE. And Regis...that is my final answer!
Don, For the purposes of Bright Trading's credibility, please make any clarifications as per my last post, which is written in good faith. I am simply quoting you on your policy. On the basis of your quoted words, Robert Tharp seems to be making a valid point. If you can clarify what you mean (as per my last post), maybe this whole 25% uncertainty can be cleared up. At the end of the day, a 25% withholding policy is most certainly a turn off for prospective pro traders... it can only be in Bright Trading's best interests to clarify precisely what the implications of your quoted words are. Candle
Don, Please answer my direct questions, which were asked in good faith. My feeling is that you have been unfairly attacking Robert Tharp, when you have yourself clearly stated that there is a Bright Trading policy of withholding 25%. Please take this opportunity to reply to my prior two posts (hopefully without the use of emotion, which merely serves to evade the issues), so that the 25% issue can finally be laid to rest. All will be resolved peacefully if you, Don, can clarify what you mean when you say: "We have never kept 25% of our traders profits, as long as they were profitable and didn't let their account fall below basic limits." in your 11.36am post. I infer from the above that there are certain circumstances under which you DO keep / hold 25% of a trader's profits. Moreover, are we talking about keeping profits or account capital (the former being a subset of a trader's total account capital). These issues are of vital import to prospective clients of yours, so please take this opportunity to clarify. Without any clarification here, I will assume that you will have informally apologised to Robert Tharp (who had made the relevant post PRIOR to joining Echo and therefore was NOT representing Echo in any capacity), who is a key member on this Elitetrader, and who commands a great deal of respect from many of us. Thank you, Candle
OK... er... ummm... speaking softly here because I don't want to get in the crossfire between Don and GHansen. Don, does this mean that right now, if a Bright trader were to make $1000 profit today, he could take out that entire $1000 without Bright holding back $250?