Yes, they declined my LLC application. I am still waiting for a reason, but have been ignored so far. Some guy called me and said it has to do with my being "published" and the nature of the LLC--- makes no sense to me. surf
Been there, done that. I don't disagree. My point is, positive or negative burn, success is still relative. have a great weekend! surf
Just some perspective. Today, if want to simply buy 1000 shares of SPY, it would cost $127,000. Then sell it later to make a couple hundred. Or to keep it for a few days to hedge other positions. Again, agreeing with Mav....hard to make any money without at least "some" buying power. Don
Don, you have agreed with me way too many times on this thread. I've never been right this often before. You really should re-consider. Maybe throw in some fade trades. I'm really getting overbought here.
LOL, yep... as I said before "way too much agreeing going on here".... I guess, in the last 10 years, you've become one of the "old guys" - although I started out there long before that. Nonetheless, the truth is the truth, reality is what it is..... glad to be on the same side (most of the time, dont' want to get too mushy, LOL)... Don
Don, your previous answers were very thought out. But, that's a terrible example. You can control 1 ES contract equivalent $60,000 for about $500 intraday. It does go up to about $5,500 overnight. Of course, that exposes one to huge directional risk and so one could use options/spreads. I routinely control what like $30,000 to $60,000 buying power at NADEX with only a few hundred dollars at risk. I do give up some edge but they cater to very small retail traders which is where I'm at. In addition calls, vertical spreads, and futures spreads may provide for even more leverage and possible reduced risk. Your previous answer covered most of the points. Your setup is obviously better suited to the professional. But, you didn't write much to the effect of the floor trading or proprietary specific edges that you bring to the table. You talked about the need to adapt. Can you elaborate on how your firm is doing that? I'm still concerned about the "alignment of interests" issues. Is your firm suitable for someone with limited trading experience? Do you provide training and sufficient edge? I don't trade stocks. So, I'm not sure what I'd do with all that leverage and only 20k of buffer.
Yes, but you should also mention the $4000.00 in Expenses for new traders at Bright in the first year... not counting commissions... and the yearly $1000 in expenses thereafter... and that the Bright payout has changed from 100% to 80% since the beginning of 2011... a 20% drop in profits for any profitable traders... and that it takes special permission to trade stocks OVER 100 in value (like SPY at 125, etc, etc, etc) and that it takes a bit of qualification by Bright and by Goldman Sachs to be allowed to use the GS API to REDI... Not all are allowed... and that you had a trader lose well OVER a million dollars trading crazy pharma trades around the 2008 year period which makes one wonder about your risk management controls and basic common sense.. and that Bright offers no written statistical proof in data base format or trader documentation that any strategy they teach in their quarterly classes has any real edge or proven return... and that the training classes are required - By You - By Bright for new traders... and that you make money off them so there is a direct return to you in compensation for smooth talking ET'ers and others into joining Bright... If your brother gives you half of what each newbie at Bright pays in their initial training program, and with about 25 to 40 in each quarterly class... That gives you a nice $100K to $140K salary each year for not really having to trade one single share... that would be nice... to mention that...
@Edgehunter, good information and I think very relevant. I had someone email me about Bright versus trading the mini-futures. Of course I told him to email donbright@brighttrading.net with any concerns because he's easy to approach. Basically, what I told him was that I believed that one should stick to retail trading and use options, forex, futures, to get leverage unless they had at least 50k risk capital (20k required) and enough savings to live on for 2 years. My reasoning was primarily based on all of the platform and desk fees and expenses. I personally believe the Bright model is just too expensive for anyone who isn't trading full time. Most of us retail guys have a hard time coming up with 5k (I do). So, really that's just how it boils down. This is not a slight on Bright but at the end of day, its just not a model that is suitable/available for me or available to most small traders.