Personally I can't understand why anybody would want to trade at a prop firm. Why give away your profits to the firm? I like trading because it gets me out of the corporate world and lets me make the rules ... not some boss or firm. Some of you prop traders here will probably disagree with me but this is just my opinion ... I'm not trying to start a war here.
Thanks, Don. I hope Gene, Vito, Hitman, and others will also join this discussion. As for whether or not I will "like" the numbers; its irrelevant. All I want is the honest truth. Thanks again. ax
I think it would be a blast to trade in a room full of traders. I wouldnt do it now ( I want all my profits) but I think its a great way for a young person to get started.
I don't know why you two don't think you'd get 100% of your profits at a prop firm. I know Bright and Echo pay out 100%. WorldCo pays out 96%. And I think Lieber&Weissman's pay out is fairly high. Think about what you're giving away on slippage and extra commission costs. And what about the missed opportunities because you don't have access to bullets? Ax
Oneway that was an obnoxious remark and if it was aimed at my response I suspect you are a very small minded person. A response like that leads me to believe you were not able to make money in the easiest market ---maybe ever for the public. I guess I should ignore you. If you did make money in it do you not think it was possible to teach others how to make money in it. We had guys training guys who had between 5 and 9 years of full time day trading experience. You do not think that we could have trained people to trade 100 shares at a time on nyse stocks. Addtitionally, there was a time when trading the qqq was so easy that a person in our office with only 3 weeks experince was able to make about a grand a day for about 3 or four months. Those are just facts. Go back and look at the chart of the qqq before they split, look at the travel range and think about buying pull backs and selling rallies using the futures as your guide. This was the qqq before the split, before island and before the specialist became and animal. You probably could have made money too.
Jem, Just curious, what firm are you affiliated with? Are you a manager of an office or an owner of the company?? Thanks AXE
axehawk, If some firms pay out 100% how does the firm itself make money? Do they just rely on commissions ... making the firm just a "fancy broker" where you can do bullets, etc? There has to be some catch to those 100% pay out firms. Brutus
Jem, You assume it was aimed at you? No it wasnt aimed at you because I never bothered with reading your initial post. It was sarcasm...but I suppose the blatant tag at the end of the post slipped by you...its humor...is it that difficult to discern? Besides opening your mouth, you took the liberty to shove your foot all the way in. Its amazing that you already know everything about my trading: what I trade, wether I make money or not...etc Do you always make such broad and liberal assumptions about the qualities or abilities of a trader based on my single sarcastic remark? Do you make such assumption in your personal life as well? Please shower us with more of your infinite wisdom. Aside from being a master trader, you are clarvoyant....don't hold back... Regards Golf Foxtrot Uniform
Yes, they make huge of $$$ off of commissions. Even the firms that only charge 1 cent a share can make a lot of money because it only costs them 1/2 a cent a share (or less) to clear the trade. If you have an active daytrader trading 1500 share lots, it can equate to over $100,000+ profit a year for the firm. Now multiply that by 300 traders nationwide. You can also up the number of shares to 2000, 5000, or 10000 share blocks. Or up the number of roundrips per day. We're talking serious money. Yes, I know that these professional firms do have some costs that they incur (data feeds, exchange seats, computers, rent, etc.) but I think they still make a lot of money even if you just churn your account. In the long run, its still a better deal for everyone. p.s. most of these firms a structured differently from one to the next. Be sure to investigate fully before trading with one of them. Ax. Good luck.
to give you a quick response. About September of 1997 my business partner Dave and I started the Van Buren Securities offfice in San Diego. We were one of the first groups of traders Van Buren had. Although the arrangement was complicated you could say that Dave and I were compensated in a way that made us the owners of our own office. A few years ago new managment at Van Buren seemed to no longer want Dave and I running our own office so we had to leave. We are now members of and have an interest in a LLC that is partly owned by our clearing firm. P.S. oneway if you read my post you could see that it was clearly made conditional. If your remark was not aimed at me than you can just ignore my reply. And I am sorry to have offended you and of course I do not know if you are a good trader, but I do know that you put up workspaces in Ravenquote. P.S.S. I do not consider myself a master trader. In fact the success of our organization came to us because a trader trained me and a bunch of guys in our office and it was only after that that we were able to train others. I just want to make money I have no desire to be considered a master trader. In fact my new style consists mostly of someone elses chart setups and a few other peoples patterns. When I actually invent something myself you will not know about it untill I have retired.