Just for fun, from our top 20 trader list. Reviewed with class** this week. 10 million shares per month guys - place hundreds of opening orders. Go home flat. Making over a $million per year. One came to class again this week. Makes about $120K doing 90% opens. Goes home flat. About 5 do opens and pairs. Only trade about 1-2 million shares. 3 do specialized "stuff" - won't divulge. But go home nearly flat daily. About 500k shares or so. 5 just make good money, and I have no idea exactly what they're doing, LOL. Several are actually adding to revenue with some pretty good programming of rebate type trading. However, Mr. Cool Dude. Truth about offices. We keep our Chicago office above the CBOE, has about 8-10 guys registered there, and maybe another 10 or so as "Chicago Remote" under same Manager. Our Langley location in Canada, and here in Vegas. No need for brick and mortar, just costs the traders more. We get together via webex, skype, goto meeting etc. Things change, Firms have to adapt or die, very basic concept. FWIW, Don ** Good class this time around. Smaller (22), but about 5 already in process with licences etc. And 4 more studying at this point. Felt good about what we did this time. Had our top guys involved a bit more, with a "live" guy who is just a trader visiting. Students liked that.
You know I do, and especially you Mr. ES. I know some think I'm always trying to be a cheerleader, or marketing something, but when so many seem so jaded about the business we love....trading. I love when my opens work, I love when my simple rules make me money each day, I hate to lose. We have "evolved" as the current term seems to be, into a Firm of top notch people. We are actually going to be a bit more selective with our new people. By next year, we're raising our capital requirements, not lowering them in the hopes of dragging in new, non dedicated traders. I'm really motivated by our last couple of groups (classes etc.) - traders willing to dedicate a full year of their time and money to actually make this work. People not looking for a free ride, or a hand out, or a sure thing. Dedication is still the single most important part of trading. We can show you what's working, provide the capital and the tools. BUT, the trader has to really do the work as well. Don't mean to "soapbox" on you, but I know you understand what I'm saying. No Firm is going to let you just come in, pay you to risk the Firms money, and if they do, or appear to, they are probably involved in something you don't see. Anyway, hope to garner a few more traders this year, and yes, a "few" more good traders. Not throwing out the big net, as perhaps in the past. We want people who will dedicate their efforts to their career. Thanks ES, for all the support over the last decade or so. Really appreciated. Don
Don, Your participation in ET and the support that you give traders is unsurpassed. I personally would apply to your organization and spend a year there to get better, but I would require that I do it in Las Vegas where you and Bob are (I stilll want that ride in the Packard). Actually Wifey would not mind living in Nevada as she prefers the warmer climate over Denver and would move there in a heartbeat. but there are many complications to that that I can not discuss here. anyways... Good Trading to You and your Team. ES P.S. wow..heard Jamie Diamond talk today....And wow I felt that dark, dark deep feeling that trader must feel right now. I have been there and done that...it is a nighmare. Thank the Lord for forgetfullness.
We all knew Bruno Iksil would screw up eventually...! http://www.bloomberg.com/news/2012-05-11/jpmorgan-loses-2-billion-as-mistakes-trounce-hedges.html But I think JPM will get out of it OK...
Not really... If I fail... I FAIL... If Don fails, I still fail...! I don't mean to pick on Don obviously but that's the way things are in what's left of this industry... I suspected it..., ....that's how it was where I used to work as well. Office went under a while later after I left... So... just wanted to get some other perspectives. As these deals work I'd be the only guy putting up any money... Risk is all mine. The only positive thing about props these days is that your office would get a commission rebate... That's about it. If you're doing any profit sharing with the H.O. then that small advantage is gone in a big way... That's about it as I see it...
Thanks for that, really appreciated. Can't do magic, can't make everyone into a great trader, only the trader can do that. We provide the guidance and the tools and the capital. Thanks again... Don
Don't understand all the gloomy talk. Have ten profitable guys (and/or gals) with profitable strategies and you have a profitable quasi-hedge fund. I like the Tradeworx business model. Basically, it's a prop lite firm doing proprietary trading and not commission trading. Looks like that's the next stage in this prop lite trading evolution.
I agree. The biggest issue is capital. We have clients that have gotten together to trade under one umbrella. It enables them to get health insurance together and share ideas with profit as the only end goal. It's very important you know who your partners are and that the business is well capitalized. Bob