When you are successful, people take shots at you. I think he has a good model. A prop trader has access to way more capital with Schoney and therefore the lower payout is more than offset. He has many different deals too. He has not pushed the buy on strength overnight strategy in years. He has transformed his entire business from a daytrading shop into a full service financial institution. Look at a firm like Bright. He is all prop. His business is so reliant on finding new traders and growth. Schoney has customers, prop, instutional clients, hedge funds, etc. Most of the other firms have gone the way of the horse and buggy because they either had too thin margins and bad risk or they were unable to get the econoies of scale this commodity business requires these days. I don't know Steve personally nor do I care what he is like. I am impressed with his firm. I do not trade for Schoney.
and if i read correctly he was with Blind'em for 5 years !!! it is very hard to work for a penny broker and not participate in their scams....especially for 5 years. if this is the case i have just lost all respect for the guy.
I'm not talking trash. This is only what I heard from our current traders who were with Schony for a few years. I have no reason to doubt them since they were head traders at Schony. I really think Schony's time has come and gone.
Well Im not gonna offer any opinions but I will say this. Just today spoke with an acquaintance that is at Schonfeld and he told me how he was hurried into the office recently and was told to size up from 5k baskets to 10k baskets. The basket is 11 stocks, in their case it's drillers and oils since homebuilders are kinda dead. A lot of guys there are told to trade heavy baskets, that is risky trading to say the least. Any firm that is pushing you to size up in this market, well make your own conclusions.
Let me tell you about a man named Steven Bartholomew Schonfeld......invests in people as well as stocks, knows how to add on to the winners and to cut his losses on the ones that don't work out over time... awesome handicapper of traders, not just stocks, has created many a millionaire....mostly out of the prop game now, knows when to hold'em and when to fold 'em...in one word, a visionary to our industry
Hydroblunt, What is the conclusion I should make? That he believes in his traders and is willing take risks or that he is desperate and has to take shots? I happen to agree with shotdoc, first post or not. Steve makes bets on people and will support you if you show talent. He is very loyal. The people around him have known him since his days running the streets of Roslyn. What other prop firm would you go to? Another sub llc, Bright, come on. Schonfeld has stability and support for a trader. BTW, I am not a Schoney trader nor have I ever been.
Itâs not about believing in traders itâs about wanting you to trade so he makes money. He makes 80% of your p&l screen each day. I rather get full payout and pay commissions. You need to take 50k out of the market to make 10k a month there. I did the math before and I would make less then a 4th of what I do now.
Ok, this thread is not an advertisement for Schonfeld so please no cheesy sales pitches. Look at their payout ratio and overall structure and you'll have your answer. Tehn talk to some of their current and especially past traders. And why they left. Then you'll get an even clearer picture. Why give that percentage of your profits way when you can go any other prop shop and get the same P/L results and keep most of it. Think about it.
Jackedup, Listen newbie, do the math. I'll make it simple. Which would you rather have? 100% payout on $500,000 buying power or 50% payout on $2 million? Payout is not everything. Payout coupled with rates and buying power determine the economic viability of a deal. How much money do you have to put up? Then you add the capitalization of the firm you are with and figure out where to trade. Overall, Schoney presents a good package.