Here are some questions for the Thursday session) (in no particular order): I hope that you will provide a brief overview of the entire prop trading industry, not just Bright Trading in particular. I'm sure you are much more familiar with your competition than we are. (For example, what categories of prop trading career paths exist -- salaried jobs, trader investment required w/profit split, no investment required w/profit split only, etc). It would be great if you could provide some statistics on your own firm to give examples of success rates. Are Series 3 or Series 7 licenses always required for prop trading? Both? Either? Differences? Is it an SEC rule that prop trading requires a license? What trading restrictions then occur for licensees? How important is it to find a prop firm whose trading systems coincide or agree with the trader's own preferences? What questions to ask of any prop firm one is considering joining. What is the role of prop firms in the securities marketplace. What is their "raison d'etre?" For example: Let's say a firm like yours has $110 million to invest. Why would two partners be managing $50M each, along with 10 prop traders each handling $1M using approved strategies, when a hassle-free alternative would be to simply have each partner manage $55M? In your business model, what percentage of your gross revenue (or profit) is derived from (a) trading profits by principals, (b) trading profits by prop traders, (c) brokerage commissions, (d)seminar tuition, and/or (e) other? Which do you consider your main business? Are prop traders expected to use the strategies provided by the firm or do they develop their own trading style over time? What if a trader already has a successful strategy or style? At what point in a trader's career is a stint at a prop firm indicated: When you start out and know little or nothing about trading (and are probably unaware of the existence of prop firms)? After you've struggled for a while and are not yet successful (but why would anyone take you if all you've shown is that you can't do it)? Immediately after you have successful strategies but haven't yet built up your capital (it won't take long to build it up)? After you've been successfully trading a long time but want to use more capital (re lescor's post about risk/reward)? What is the best argument for a trader to decide to become a prop trader? What characteristics do you find most closely correlated with a trader's success or failure in your system? Thinking of the prop traders who have left your firm, what are their most common reasons for leaving, and their most common subsequent career moves? I intend all these questions in a sincere and interested way. I have a healthy level of skepticism about everything. If you consider these questions too brusque or intrusive, I guess you don't have to answer them. Thanks.
Spinner, I'll address all those questions on the chat as I'm sure Don will as well. I think many of your concerns are the same as everyone else's. Most people on ET know that I'm a very straight shooter, almost too much of a straight shooter. I'm very forward and direct and won't BS you. I look forward to Thursday's chat.
These seem pretty fair, and will give answers and hope that Mav will do the same. Different firm's ...some answers will be different, of course. Thanks for joining us. Don (edit) I guess I was typing while you were answering Mav. This should be a good start.
I don't have the chat site open. I will open it Thursay early so everyone can get in. I just now opened it, I'll keep it open until the close if you want to test it. Actual: Main Paltalk room: ACtions (Join Chat room); Business and Finance: Daytrading: Proprietary Trading Forum..... List is shown by number of members (Since I'm the only one in there now, we're at the bottom of course). Don Don
Curious if this will be recorded? Have a scheduling conflict for Thursday afternoon. I've already heard you speak in Dallas, Don and would like to hear Mav's points. Not that I don't enjoy hearing you speak. Thanks in advance. Bsulli
I hadn't planned on recording it, but anyone who wants to do so and share it, fine. Because of this possibility, some questions may have to be addressed with a follow up conversation (for regulatory reasons of course). I don't want to give "bum scoop" regarding rules and regulations, or anything that my Compliance Officer might have trouble with. BTW, I have asked Rob Friesen from PairCo to join the chat room as well. So, if anyone has questions regarding Canada or their specific strategies I can ask him to respond. Mav and I will share as moderator's, of course. I don't plan on making this a competitive thing with Mav or anyone else, just trying to clear some of the murky water as of late. Don
Here's a few questions for tomorrow: Do prop traders typically use Level II data or charts for their entries/exits? I know of one daytrader with his own blog who mentions that the office's software - charts and quotes - often freezes/stops updating. How common is that with Bright and Mav's firm? Can third party charts be used? How quickly can a new trader increase his trading size? (I know it will vary.) Do prop firms help traders with their taxes? If a firm keeps x% of the trader's profits, who pays taxes on that money? Does someone joining your firm have to sign a noncompete contract? What are the limitations after leaving the firm? Could a failed prop trading go to work for a broker and continue trading his own account? Also, can one trade a separate, retail account while at the prop firm?