Not true. When you do the math, you actually tend to make more from commissions than profit split, hence as long as the trader is not a loss to the firm, it does not matter if he/she makes money. The math does not work for profit splits in US equity daytrading, that's why every firm ended up going toward commissions, with the weaker ones turning to the churn & burn way of doing business. Otherwise guys that get good, want their full profit and leave. It's just not there to split profits, it's like trying to get water out of a stone. I think that deserves respect and I commend any firm that tries to that. Although I only know of one firm who put their money behind their extensive training, which leads into my next response. Let's make something clear. FNYS is in a league of its own. They pay a REAL salary for 12-18 months, not a measly 2k a month draw for a few months that Chimera tries to boast. I don't think you guys pay anything, correct me if I am wrong. At FNYS you don't even get to put on a trade for at least 12 months, no matter of your background. They don't aim for money everyday daytrading, they aim for weekly and monthly profits. The difference between FNYS and your firm, as well as the other ones you mentioned, is that FNYS puts their money where their mouth is. They will pay you a salary to train for at least year. They pay you to NOT trade and truly learn what they do, as well as do back-office to support their traders. At FNYS they would rather pay you a salary for an extra few months to make sure you fully get it rather than send you to produce after a year. Hence they get the respected reputation & the best applicants. Are you willing to pay a real salary for 6 months while your trainees learn and NOT trade? While they get comfortable deciding what best suits them, play with simulator and papertrade? I truthfully doubt it. The reality is that your business model is not much different from what Worldco and many others were doing back in 2002-2003. The real difference is that they taught a simple gimmick or two which were a lot more lucrative with less risk than what the current environment offers. Frankly, the show is a joke based on its first season. And from what I saw so far, the joke keeps growing. I don't see why you guys are proud to be on it.
Well the SanDisk guys are toast! Thats what they get for being cocky and ignorant at the same time. If you find yourself surrounded by a culture you know nothing about, it best not to run your mouth!
Yes, baseing your whole future on one stock seems a little crazy.It depends what positions they're actually taking themselves of course.Those boys looked smart to me so I doubt (very much indeed) that the show will get the true picture of their positions.I enjoyed the first series and expect to like this one too.It's the smell of money that makes it watchable and the humour that having a little behind the scenes knowledge adds.
It would be better if they chose characters more carefully. The kid from Florida is not business savvy at all (example: he thinks it's a mistake to miss one relatively small trade to meet with a potential client which would boost capital under management by >5-10%). I enjoy having a day trading firm on the show - perhaps it will provide some clarity on the industry. I'm not a day trader - I work for a wealth management firm so it's interesting to see that side of the coin. The guys touting SNDK seem like they're overdoing the "Wall Street" mentality - trying to make it sexier than it truly is for someone in their position. Don't let your ego get in the way of your wealth, gents. I suppose it's easy for me to sit back and say these things from outside the situation but the show has a superb premise, it just needs to be tweaked to get larger viewership.
The straight line pitch was invented at Shearson (post Lehman merger). It has remained pretty much unch since the mid 80`s. One of my very close friends was one of the first brokers at Stratton Oakmont...was there when it went from 5-100+brokers. Left in the mid 90`s. "went straight"...as he says..stayed in the biz un-marked until 2001.
Everyone left Stratton in the mid 90's..when the FBI showed up it was lights out. Fights in the bullpen, due diligence parties at the Garden City hotel..oh yeah ..those were some good times.(iwasn't at Stratton..i was at the firm that they all went to after the raid). I "went straight " too...had to do the move..SEC was putting an end to the big rips anyway. No more $1 rips in a $8 XYBR..or $1 rip in $6 ACAR...
True. I meant that he got out before the feds came in. I worked at several nefarious BD`s on the island. Ahhh..the bad ol days...
I'm suprised one of them didnt scream out "GRECKO!!!!!" http://youtube.com/watch?v=iyJwdzmBShs Pretty entertaining show though....i wish they would do a Chicago season though - get some cme & cbot traders in there
Hydroblunt... nice name and good post. This show has completely sold out. Instead of trying to promote true Wall Street Warriors they promote adolescent kids with a very limited knowledge of Wall St. The whole Sandisk bullshit is nothing but a scheme and they actually put it on TV. It's ludicrous to promote people who are riding their whole LIVES on a stock as wall streeters. It's obvious that the show is past realism and promotes the 'ahh' factor of MAKE OR BREAK finance and young guys driving Ferrari's. Anyone else find it amusing that this girl who spent 4 years at B school only to end up reading the complete idiot's guide of trading?