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I agree with Don. Not enveloping only because of the "catastophe scenerio", doesn't make sense. By that logic, none of us should trade because our stock could always get halted and we could get crushed. We accept the small possibility of that kind of problem. Although the "catastophe"...

http://www.greentreetrading.com/index.php?p=pef

Any of these props offer a salary? Greentree offers a prop deal where you pay "their costs". Any idea what this is? If they are acting as a middleman for other b/ds might this be higher than the lowest bright/echo/assent deals?

With Supermontage - Nasdaq tried to get all the ECNs in, making in effect one big order book if you route to Nasdaq. SM was supposed to kill the ECNs. Didn't happen and now Nas is fighting just to stay competitive. The problem is that ARCA and INCA already had so much market share they...

Some people would say that providing for your family is a laudable effort. I wouldn't, but some people would :)

Agree about the r/r and scaling - good stuff.. But don't all the "Trading is war" analogies just pump up the testosterone for the average newbie (aspiring "billionaire genius") trader? Leading to emotional decisions, bad stuff.. My 2c.. Let's not make it sound more heroic than it is...

Remember, whether people perceive you as a) A financial genius or.. b) An irresponsible gambler is based on only one thing.. Your success in trading. All else is just a bunch of talk. Show him your P&Ls. If you have made money, you have proven him wrong. If you have lost money, he...

I am looking into MSFE programs, but I'm wondering if this whole concept of Fin Engineering is a bunch of hocus pocus, as used in propietary trading. It is so heavily invested in by the best and the brightest in finance in the world (namely the Wall St big firms) - that their guys are going...

I agree, it's really only an issue if you asking them to have discretion with their decisions. If they are trading a system they can just press the buttons. If they have discretion, I wouldn't give them much time to become profitable. They should be coming in with a clear method ("edge"...

Just my 2c.. Personally, I do not automate anymore or have set targets and stops. I'm hesitant to do so because I believe that there is increasing use of automation by other traders. The market will find a way to beat some of these folks. Obviously there are computers set to match bids and...

Longer-term holding periods would be better than scalping, if there were not so many changes in direction. It's all this whipping around in the (US STK and FUT) markets that makes scalping a better choice. I think the optimal frequency of your trading would be based on the number of...

One thing is for sure, scalping is an interesting way to make a living. I understand it is not suited to some people and that's ok, to each his own, but some following observations. First of all, statements like "you can't make money in scalping" or "the opportunities aren't there anymore"...

..and CNBC. Their cheerleading is sickening. So unprofessional, IMO.

Manipulation is a word used only by an obvious loser. When someone says the word, you know they just lost money! Notice how it's never "manipulation" when you score that big win! That could have only been the result of your brilliant analysis and skill. :) Are unseen forces controlling...

This is a sad story. I would not hire someone to trade your account for you (especially from ET! :)). There is nothing to prevent them from setting up their own secret account for themselves and taking the other side of all their trades on your account. So while your account is losing, they...

I did not say that TMBR will fill a customer at a worse than NBBO price. I said that when a customer is filled by TMBR they are being filled by an organization with a relationship to IB itself. The term "internalize" may have some negative connotations, of course, depending on one's specific...

My point is just that the temptation to do larger size orders has some effect on your other trading costs, most importantly, at what price your orders can get done. If you are adding liq with these larger orders, your risk of partial fills are increased, especially when going >1000 shares...

Rates based on per share, and the reduced rate for larger size orders such as Bright's and Interactive Brokers' model - is not a fair comparison. There is more risk for the prop trader in trading larger size orders. You are less likely to get the entire order filled at one price...

I disagree with many of these statements critical of prop firms. First of all, their intentions or expectations about how often you trade are irrelevant. You are free to trade as much as you want. If you get any crap about it, there are plenty of other prop firms that will be happy to have...

LTCM did not fail because their assumptions/model was flawed. They had on too much leverage to be able to withstand the positions going way too far in the wrong direction. The correlations eventually revert back, as the model says that it will, but before that happens, it goes so far the other...