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Just a note. This is one of the toughest trading environments I have seen. A bear market,no momentum and .01 spreads make this a very challenging environment even for seasoned professionals. As a general rule, I would estimate one out of ten will make it as a short term trader in this...

K-1's that we send our traders show: Capital acct. at the beginning Capital Contributed during the year Partners Share Withdrawls & Distributions Capital Amt. at the end of the year Taxable income or loss I believe the Partners share(gain or loss) includes commissions, desk fees(as a...

Treykool, After you make a capital contribution to a firm like Bright, LWS , ECHO and other pro firms, you are actually trading firm capital. For accounting purposes, you are issued a sub account and become a LLC member(partner) and are issued a K-1 tax form for tax purposes at the...

If you trade at a pro firm that allows you to trade options, most will give you Broker/Dealer margin on spreads, Conversions, Syntheic Puts, Syntheic Calls etc. Since the 1987 crash, no clearing firm will let traders sell naked options in size(especially puts) since the volatility risk can be...

cartm, Try Platform Technologies in NYC at http://www.plattech.net/ . They do JAVA, JAVA Script, C++ and Visual Basic programming . They have done some projects for us and have some talented programmers. We have a C++ & VB programmer on staff, but we only do programming for our in...

m22au & Robert Tharp, I offered to pick up all the server charges for Don's site, but he did not want to have anyone help him. His e-mail should be donaldj@sonic.net . He has not answered any e-mails that I sent him. I called Sonic.net and they said that Don Johnson had shut down his...

I heard that Sonic.net was going to charge Don Johnson for space on their server and for this reason he took the site down. I e-mailed him, but he did not want to continue the site. He is a retired teacher and the site was a part time hobby to him. Gene...

ziggurat, LLC's are not subject to the same protection as customer accounts. I would talk to the LLC Managing Members and express your concerns. LLC members should get a copy of the firms LLC agreement .The agreement should give information about capital contributions, withdrawl of...

Don, I hope your sugery goes well and you make a speedy recovery. We all miss your words of wisdom. If you have a laptop, give me an e-mail. Gene Weissman Lieber & Weissman Sec., L.L.C...

Newatthis, I haven't heard anything like this . The daytrading trading firms generate a substantial income for SLK and they provide "liquidity" to the trading markets. In terms of direct access ,software REDI+ is largest(by share volume).I doubt SLK would leave this business. It is...

I highly doubt SLK will stop servicing the trading community. SLK business is built on clearing. I'm sure a good portion of SLK's income comes from servicing short term equity traders. SLK may however increase capital requirements for firms or ask marginal firms to leave. It is possible SLK may...

traderjimbo, There are rules for trading NYSE direct. A trader cannot execute in the same stock for 30 seconds after using NYSE direct. This applies to each firm trader . I could Buy 1000 IBM on NYSE direct and immediately sell on NYSE or ISLD. The NYSE prohibits breaking up large...

Just a note. There are advantages to NYSE stocks that include liquidity, centralized market place and price improvement. In our firm , we have traders who trade both. This year, the NYSE traders are doing much better. NYSE direct(auto-ex for 1099 shares or less) and ISLD, give NYSE the...

Vinny1, You should only pay tax in your state and any federal tax that is due, if you are a member of a LLC. If you live in NJ and commute to NYC, there may be some commuter tax. LLC's usually issue a K-1 tax form . Keep a list of all your expenses and items you can depreciate(computers...

Just a note . I don't give legal advice but LLC laws can vary from state to state. LLC's based in Nevada & Delaware may have some advantages over other states. In some states, LLC's can be a member of another LLC . In Massachusetts , a one member LLC is not allowed. I would suggest you speak to...

Just a note. Why do we need another option exhange? Is option volume increasing or decreasing? Does the ISE and the four option exchanges provide enough liquidity? If trade problems are really option exchange systems(auto-ex , fills , reports etc.), maybe that issue should be addressed. Will...

Don, Man does not live by Bread alone! We do take lunch once in a while on the East Coast , or at least strech our leggs for 20 minutes. Gene Weissman Lieber & Weissman Sec., L.L.C. gweissman@stocktrade.net

Don, I would agree with you. However, if there are traders who are daytrading five plus positions(or are at lunch) , a stop order can lower the price of lunch from $1,500 to $250(assume stops go off at a resonable price). I would agree with you that a "mental" stop is the way to go...

I believe that it is the software(not ARCA) that accepts stop orders. The program in the direct access software accepts a "stop" order and sends a market order to sell(assume you are long) when the stop price is reached . The order is now sent from the direct access software to ARCA. Since INCA...

Just a note. Stop Orders are accepted by the NYSE and AMEX. Generally NASDAQ does not accept Stop Orders. If you trade NASDAQ and your software accepts stop orders, the software generates a market order,once the stop price is reached. Unless Charles Schwab has a relationship with a NASDAQ...