I think we're missing the point that whatever capital is alloted to a trader, they should never be using 100% of it in any direction, or not at least 20% in reserve buying power (sometimes higher, depending on the direction of the majority of open positions) to anticipate a reversal, average down, or increasing a position on a correct call. And whether it's 50K trading 100-500 shares, or 1M trading 1000s, the total amount of turnover in a day can vary dramatically depending on a trader's method. I could do two trades with 1M on AAPL alone for 1500 shares in and out, versus trading 500 shares 50 times in a day in and out on a $10-15 stock. It's all relative. I actually prefer less capital than more, but then, I prefer to live dangerously and trade the big name techs, and they ain't cheap, but the move like bitches on fire when they spark.
Keep in mind that "using capital" is not necessarily "leverage" or margin. Sending in 30 buys and 30 sells on 30 stocks, pre-market for the opening gap - knowing full well that you likely be filled on only the extreme 3-5 stocks....."uses" capital of maybe $500K to try to make about $500 or so, and is not actually "risking" the $500K. Placing enveloped orders, layers if you will, may "use" capital, while not actually risking capital. Just to clarify why "using capital" can enhance your trading profits, while not actually adding to risk. Don
Except that day when 200 orders all get filled and they all go against you. Of course Don that is a 10 sigma event that only happens once every 25k years.
Yeah, mine happened only once - (yes, I'm copping to it)... I was in our Reno office, trying to motivate them about the opening play back in 2001 (no, not 9/11)...after 9/11 - I had turned off our communcation line with the main office so that I would have everyone's attention (bad move it turns out, LOL)...well, there was an "incident" in NYC involving another plane, right before the opening....my Vegas team had alerted everyone to cancel their opening orders....I missed the memo as they say, choosing to have my Reno traders focusing on me....LOL. Well, I got filled on only 100% of my buy ordes - about 25 or so at that time...definitely a "oh Sh##" moment....I'm glad to report that after showing down about $10-$12K - that they found out there was no threat, and everything came back to a profit....LOL So, I guess I'm good for another 25K years, right? Don
Does Don B only talk to maverick? Does Bright still offer 100% payout? The 100% payout was your big sales pitch. What are you offering now? Why do you charge remote desk fees?
Feel free to call to discuss all of this, there are variables involved. We can chat about our business model. The "desk fee" pays your NYSE exchange fees and Level 1 data flow from there as well. And, is rebated back fully at only 200k shares/mo. This may seem like a lot to some, and I realize that some trade part time, but many find that they trade that much or more when given a few tools and strategies. 702.739.1393 - mid tradng day is usually a good time. Don
You who speak of needing huge capitalization to make a living do a grave injustice to small players who believe they can make it with $50K trading futures. One presumes that is because YOU can't do it.