That there is one of the most informed and enlightened statements on this board. Agree 100% - especially with the most important being discipline.
It is possible that whenever someone closes an account, or blows out he keeps it open with a balance of 10 cents... thus half the accounts could well be more than 5 years old. Very few last 5 years in this business under the absolute best of training conditions, trading platform, and commission rates.
LOL, no, I don't think we keep accounts open since we must file paperwork and pay fees for everyone. And, since every post is read by Compliance (Hi Diane), and the Regulators, I just double checked by sorting active personnel by start date (before posting). I won't put out the exact number of traders we have, for various reasons, but the percentage is 53% with us 5 years or more. A "good" stat for long term trading, but what I like is that the retention overall is getting better. A more "serious" type trader seems to be coming on board the last few years. All the best, Don
I have no desire to post on the public board. Come by my office and I'll show you however. I don't see why you think it's such a great number...a lot of floor traders have traded for decades. All the best, Don
All I can say is what is. We have traders with us since 1992-93 era. Nothing to "exploit" that I see. We've had this organization running for 16 years. I feel "good" about our retention, but always working hard to improve it. All the best, Don
I have the reputation here on ET for being hard on Don in the past, or at least a reputation for ensuring that he doesn't post uncontested misleading information here. That said, I see no reason to doubt his statement that over 50% of his clients have been with the firm for 5 years or more. I'd be very surprised if this wasn't the case (while Don can be misleading and a spinmaster, I've never seen him be outright dishonest). Please note what he is saying: 50% or more of his clients have been with Bright for 5 or more years. He is NOT saying that a trader has a 50% chance of surviving over 5 years. Even assuming that 90% of their new clients blowout and close their accounts within 2 years, it is still not hard to imagine that he is being 100% honest with his statement. It's really not a surprising stat, given how long they have been in business, IMO.
LOL...."thanks Eric" (I think, LOL). That's what I was wondering, even if we did have a "normal" attrition rate for the industry (which we don't...according to the "spinmaster" LOL)....we had 8+years to acquire and keep a couple hundred traders...as I said, "good" but not "extreme" or anything..... always room for improvement. Don
I think for the most part Don really trys to call it like he sees it. He posts his trader retainment % for traders with him over 5 years and some can't believe it when in reality it may not be that impressive. Just to throw out #'s and not to try and discredit Don in any way ( I think you're a asset to the board ) but only a few know what the actual #'s are. What if Bright brought in 100 traders a year since 92 and what if 9% of the traders brought in during the first 3 years stayed with him and 12% for the next three and 15% for the next 3 and 18% for the next 3 that have been trading there for 5-7 years. I think that totals 162 traders over 5 years. Now what if the first 5 years are 20,25,30,35 and 50%. Now do the math and add in a couple family members and your around 53%. You could skew the #'s any way you want to make it seem better or worse. What if Bright took in 0 new traders for 2 years and then said 100% of our traders have been with us for 2 years or more and some of them have been with us for 16 years?
You know, it's funny, all these years with discussions about traders "making it." Trading is simply a business, you find the best firm to fit your needs, work hard, and you have a chance at a lifetime business venture, with limited downside. Anyway, the numbers are simply what they are. My only point was to say that this can be a long term career. All the best, thanks everyone... 'Don