OK...Since I "quoted myself" above...here are some quick numbers for 2001: 302 started in 2001 52 of those 302 quit in 2001. Just following up on your request....
Retention has gotten better over the last few years, due in part ot the Series 7 and to ongoing training. We really can't emphasize enough the importance of getting traders (new and experienced) to get into the right markets and strategies....and to be flexible and adapt to new conditions. Even traders who made big $$ in the past need to "park their egos at the door" and see how to tackle current conditions.
I myself am currently a prop trader and from my original training group of 16, only 3 made it. I don't know the exact statistics, but in my estimation 25-50% of trainees at my firm eventually become profitable enough to make a living scalping.
An 83% retention rate is very impressive. But of course you know what my next question will be. Of those 250 that survived, how many are currently in the hole, breaking even, or making over $75,000 per year (after commissions/expenses) ???? (I thought I'd ask before someone else did.) Thanks, AXE
Sorry to rain on your Bright Trading parade Don, but that number is so off the wall it is not even funny. You said it before yourself that on average 40-50% of your traders is gone first year, look, if you claimed something like a 55% survival ratio it would be a lot more believable. 83%? What hell are you smoking and can I have some? OK, I know 83% is NOT profitability ratio, so that makes sense as I don't personally know anyone at my firm who actually quit if they started after say June 2001. Afterall if you put a lot of effort into S7 etc you will not give it up after just what, six months? It is amusing how much marketing crap you have in your numbers. I mean, duh, unless the guy got ran over by a truck, chances are you will have a close to 100% of the people still there by 2002 for those that started after August. I mean, if they took the time to pass the exams and dropped 25K into your capital account (which will be held for what, six month to a year, whatever), they are going to spend probably at least six months there before tapping out. A much better response, would be "how many people actually lasted a year or more at Bright?" Now the magic question is of course how many people are actually making a living, I can't wait to hear that. I am not sure what the retention rate for Worldco is, but last time I checked we have 40-50% net positive traders, somewhere around 30-40% of the people are actually making at least MCD money. This year of course those numbers all fell to the bottom of the range . . .
trader99, I couldn't have said it better. i've had to pay so many dues and learn so much to get where i am that i know there's no way in hell that John Jerk could just walk into XYZ LLC from off the street, get a little training, and become profitable after a few months of tooling around...I for one am glad that we are in rough waters, 'cause it helps the true traders stand out all the more. When cab drivers are making bigger returns than you at the height of the madness because they leveraged their Yahoo and CMGI ten times over, it can get kind of grating. But when tough markets come back along and all the bubble boys are busted, suddenly experience, skill and patience are worth something again.
well it's been a little over two years in trading. i was trained by my firm using their money. eventually i went on my own and in the process switched firms. to the point in the last six months i have a large amount of layoffs, or people giving up. both prop and retail guys. at the one firm i traded at i know they decided to fire about twenty traders that they hired before they even began to trade because they were losing money on newbies. i would say the rates are low but for those who learn to trade in this market will be very well prepared to trade in a better market( if we ever see one again) good luck
Hitman, come on, get a grip...I told you before that I can't use "marketing tactics" since all of our posts are reviewed by the regulators...and I am not about to post something that is not true...I posted real numbers, you can do the same if you like...I suppose WorldCo will give you access to their numbers. Very simple: How many started in 2001. How many still there on December 31, 2001...that's all ...and, no, I won't bother going into any more detail until someone else comes up to the plate. We know the learning curve, we know it takes time to get good...just show us something...or not. Or, better yet...answer some of your own questions. Anyway, let's keep the gloves off....I had a few private responses that were apprecitative...we can let it go here if you like....
First, while there are always a few stocks that move at least a point, if not at least a few, the market as a whole has had little volume and movement (especially movement with conviction). Not all traders can jump into a few stocks, unless those stocks are ones where all the institutions jump in as well because of major news in an extremely liquid stock. Second, again, while the idea that retention rates might be better sounds logical theoretically, it is not the case. The market is extremely tough, firms are tighter than ever, and people are quitting right and left. I know from talking to the myriad of traders that have been doing this successfully for 1, 2, 3 and even 4 years that rates and success both used to be much, much higher. Also, training is a limited tool, so the idea that traders stay in higher numbers now because they must be trained better overlooks that good traders are not manufactured through training, but rather are observant people who combine the most important elements, experience, discipline and talent, with the supporting element, training, to achieve success. Have a good weekend everyone!