Guilt over signing a trading contract

Discussion in 'Prop Firms' started by masterblaster, Aug 8, 2007.

  1. Formerly, I was a professional gambler who gambled both online and in the casinos.

    I've been at this prop firm for over a month now and feel guilty that I signed this contract with a prop firm.

    Can I really trust these people with my cash? When I was gambling, I felt I could trust the internet outfits and casinos very well. Im not certain that I feel my cash is safe with the prop firm and this trading contract has a lot of language that I simply dont understand.
     

  2. If you have to ask....it's probably not. Your accounts aren't guaranteed, and if a trader blows out, or the firm just isn't making money, you might lose your money. It's part of the risk you take on when joining a firm. There are a few good firms out there, and if you're lucky enough to be with one of them, your money is as safe as it's gonna get, in this business anyway.
     
  3. I thought as much.

    I know that my cash is safe in one of Trump's casinos or in an account on an online gambling website. The casino has never taken my cash and has always been fair.
     
  4. hey, you could always go back to the casino to recoup any losses. lol.. close your account if your concerned & do some homework in finding the right fit.. its not easy.. their are some good firms out their depending on a traders needs.. good luck
     
  5. if the firm has been around and has a good track record,you will be fine. just never put up more than 5k.
     
  6. Just remember the primary reason that 90+% of all new business ventures fail the first year is "undercapitalization." And, since you're receiving interest anyway, what real difference does it make to put up a reasonable amount? I realize that some of the smaller firms will take on people with a very small amount of money, but at the same time, they limit what their traders can do.

    Now, if the firm keeps your money for 12 months or something like that, then that would be a whole different thing. You need to move your money when you're moving to a better firm or taking time off.

    Just something to think about.

    Don
     
  7. You just signed a completely one-sided contract...
    That leaves you with virtually no rights...
    And entirely at the mercy of the prop firm's idea of "self-interest".

    But this is fairly typical of the US securities industry...
    Whenever a "mouse" signs a contract with an "elephant".

    Only 2 things protect you:

    (1) The "honor" of the people you are involved with.

    (2) Your ability to litigate via the US legal system.

    Again... it's not unusual...
    But don't let salemen like Mr.Bright...
    Soothingly whisper in your ear...
    That there's nothing to worry about... ever.
     
  8. masterblaster.. how much was your risk deposit? do you have a holding period on your money? closing your account might be your best choice, since you uncomfortable with the situation.. all contracts are confusing to most, usually one sided, theirs.. any other reason why you have a lack of trust with your firm?
     
  9. artis74

    artis74

    "(1) The "honor" of the people you are involved with."


    When it comes down to looking for honor to save you prepare to be screwed. I cant take honor out of the bank.
     
  10. It's the reality of the business world.

    No matter what contracts you sign...
    If someone has your money...
    They can just say, "Sue me".

    There is only one way to protect yourself:

    You have to be someone they will CHOSE not to fuck with...
    Because you can win a legal battle and take them down...
    Or at least REPRESENT yourself as someone not to be fucked with.

    If you can sue and win...
    Which means at least $100,000 set aside for litigaton...
    People will just do business with you... with a smile...
    And then screw the next guy.

    Until you reach this point...
    You are a sitting duck...
    And must be extremely careful.
     
    #10     Aug 8, 2007