My question is what makes worldco so different from any other major prop firm? They all have the same basic business plan and I assume many of the prop traders at different firms use the same nyse strategies. So if worldco is going bankrupt, I wonder how bad business is at some of the other prop firms.
There are many factors which can be the difference between being profitable vs. blowing out, some of these are... Software (speed and reliability is so important), commissions, availability of quality news sources, new computer equipment, general trading atmosphere (do you have a floor full of pikers or successful traders?). Some other pitfalls for new traders (no successful trader would ever fall for these are)....... Certain firms charge desk fees, have volume requirements, teach strategies that force you to churn commissions, try to gouge you with their commission structure, profit splitting, etc. My point is, what happened at Worldco won't happen at other firms that realize how to properly run a trading firm.
It was mostly over-expansion. I was there for a year and they went from something like 500 to 800 traders in the span of six months or so. Too much overhead, not enough profitable traders, and when the volume started shrinking...
How bout a complete lack of training or care about their traders? Or the failure to realize that it takes a lot more than 3 months to get profitable with high commissions. They put absolutely no investment into their incoming traders so what do you expect? Seemed like all they did was get new traders in, get them to churn their cap away and then ask for more money. Not a good business model.
They put absolutely no investment into their incoming traders so what do you expect? Now, now. They had those nice training videos on the internal web site. Obviously, WLDC failed because the traders did not watch the videos, especially the ones that were so old that the speaker talks in fractions