It's a bad business model for the trader. The broker runs lots of ads to keep a steady supply of new "customers" as part of its business model.
Sure, I agree. However, good trading makes the trader not the amount of risk capital. I know, I know, one must be able to endure drawdowns. But the study you are citing may not be applicable here. People that have <25k were swing trading. Day traders were not included here, which actually might make the #'s worse. As for as modeling a sound strategy, it would help the bottom line to hold clients longer, more than churning throgh new meat...IMHO. So what does this study have to do with the no-pdt rule at Alliance? Michael B.
Churning through new meat is a very successful model. On average, 90% of traders are going to fail. Brokerages go with the odds.
I wonder what would happen if a brokerage targeted successful traders? I guess your correct on this point now that I think about it. There are many gamblers/dreamers/entrepreneurs out there to fill the pockets of the oddsmakers. Michael B.
Hi my name is Russ, I'm the friend who this thread was started about. I actually have an account with www.alldaytraders.com I've had an account with them for about 2 months. My equity is only about $12,500 currently and I have been day trading multiple times everyday. The commissions are a little higher than I'd like. When I started I didn't want to pay the commission listed on their site ($12.95), so I emailed them and they offered me $9.95+ECNs. Still higher than I'd like, but that's the same cybertrade offers. Plus where else can I day trade everyday with less than $25000? ...No place I know of. They've been pretty good so far. I've taken money out and deposited a couple times without any problems. I guess I'm the guinea pig with these guys, so I'll answer any questions you have when I get some time. It's a little hard during the day since I day trade, plus I do some consulting work as well.
Well Russ, I'm Tradewiz I'm one of the few people that post that have account through www.realfasttrader.com Also know as speedtrader. Anyway it seems when a decent opportunity comes by people want to pick it apart and analysis it to no end. I personally will be moving a large portion of my port to www.alldaytrader.com in 2 weeks from speedtrader.com The reason is simple commissions. I'm paying $11.95 + ECN and NASD fees. I called up Alldaytrader AKA alliancetrader.com and got a flat rate of $8.95 also + ECN and NASD seller fees. Not a bad deal I think. My trading is moderate comparted to some. I trade about 3-10 times round trip per day. Anyway I will also will report back any issues I may have.
somebody who has an account with alliance I tried their free software and it worked good I thought I would try an account with 2000.oo to try them out 4-1 buying power all day long they say
I deposited only $2500 at first, after a few weeks I deposited more. It is true what they said I get 4 to 1 BP and don't have to follow the nasd pattern day trading rule. I do maybe 10 day trades each day and like I said only have ~$12k in my acct.
Ahh...Ebo your just fishing, you still need to report your worldwide income if your a US citizen, so do not even think about it. Michael B.