Since the thread started out with reference to our firm, I thought I would wait a bit to see what kind of responses we got...and to my surprise, most of them are pretty accurate and informative. I thank Mr. Tharp for his article about Prop trading...and there are more in Stocks and Commodities (yes, you can find them under "articles" on my website). Our firm has survived, and actually thrived, by not being greedy (so many firms have come and gone because traders could not overcome the high commission structure). We have lowered rates year after year as our firm grew, which made it easier for our people to make money. We are real fans of continuing education, speaking about things that are actually making money right now, not theoretical concepts and fluff (not inferring anything negative about others, just stating our focus). We have supported traders through the bad times (sorry, Hitman, but we too have carried quite a number of traders who were going through difficult times). We are a "big" business, very strong, well capitalized with our money, not just the traders money...and yet, we pride ourselves on being a "family run" firm, and we keep overhead low, and haven't run into the problems that so many have. We choose not to be retail, we choose not to "self-clear" (this causes a hard, fixed cost, that can lead to desperate moves just to pay the overhead). We are part of big Clearing Firm (SLK, Goldman), and reap the benefits of their economies of scale...and our costs are variable...so as we grow, costs come down...and we are proud to have grown over the years. In fact, we have grown about 40% per year for a decade, through good times and bad...and we are continuing to expand in 2002, while not having to stoop to extreme recruiting practices. We try to "attract" traders rather than "buy" them with the cutting and slashing of prices (sometimes just to stay in business). We don't "franchise" and don't particpate in "multi-level marketing" by having "middlemen" who pay one price, while charging their "buddies" a higher price. We are currently (actually right this second) having our Western U.S. managers meeting in Las Vegas. We have 25 of our mangers here to discuss our next step in our growth. We meet with our East Coast contingent next weekend. There are many detractors within the business, as there are in any business, and we try to take the jabs with good nature. We can't please everyone, all the time...and a few "disgruntled" traders, and those who are (what I call) "overly competitive" in nature, will look for any flaws in the armor...and it is easy to find negatives....in any successful business (just like in the Conservative vs. Liberal arguments)...but when all is said and done, we sleep well at night, work real hard (trading, running the company, doing classes, teaching college course, radio shows and magazine columns, etc.)...and love every minute of it. We enjoy our business, I personally try to act as an "ambassador" of sorts, and focus on overall growth vs. pirating other traders from different firms. We all have something to offer, and if we all help grow the industry, then we can all be proud of what we do. So, even though this is sort of a "Bright" thread...I want to acknowledge in a positive way the other firms who help the industry. And to the others...please try to work together.....and I will say it again... You never know who will be working with (or for) whom...I have been on many sides of this industry, and have run into many of the same people...and the people who spew vile comments and slander others will not hold a place in the future with many of us. Sorry if this is a long post....I just wanted to say a few things .... and I'll put my "flak jacket" back on and wait for the "slings and arrows"......
I missed a comment about "losing 10G's" and you're out...I hope that wasn't directed at Bright. We use 30 day and 90 day evaluations to see how all new traders (and their managers) are doing. We want to be sure that new people are getting the help they need, understand all the ways to keep costs low, and are doing some of the basic strategies to making money we all employ. No magic....just sincere desire to help traders get past their "learning curve"...some do, some are stubborn, some never will. We offer all the help we can, but if someone loses more than a few grand in 3 or 4 months of their "curve" then something needs correcting, and we do what we can to correct it.
[ Is there a book or website that explains the particulars? From previous posts I read that Don Bright has a training class, but I am unable to find any details on his website.: Check the "training" tab on the site.
Now that I have an understanding of the relationship between trader and the firm I understand why the Bright site doesn't go into detail as far as capital contributions etc. Thanks for all the replies. To Don Bright: I'd like to call you tomorrow if you'll be in; any preference to the time?