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Anyone hear of Main Street Trading Company?
- Thread starter sung1contrarian
- Start date
I've been studying/practicing technical analysis for 15 years and let's just say I've been around the block a few times in this business (finance/trading, etc). I saw the ad on Craiglist for this position so I thought I'd watch it just for the sake of curiosity.
The presentation starts off ok. You get the first $4k of trading profits each month and then the split is 65/35 after that. Now here are the problems that I began to see:
* At the end they go into an infomercial type thing where they say that if you sign up in the next 30 minutes (before you can think about it) you can get their study materials for $595 instead of $795. Reminds me of Eric Cartman's gem shopping network.
https://www.youtube.com/watch?v=hvdxxduCWwA
* I would have no problem paying for the study materials but there are other issues. (see below)
* So even if you pay for the "study materials" they only have their weekly mock trading competitions every two months. Only the winner gets to come on board. How many people are trading? 50, 100, 200? If 50 people are trading they have already made $30k selling the "study materials" then your chances are 1/50 and if it is 150 people your odds are 1/150. Even if you are a good trader and don't make it the first time you have to wait two months before you can try again.
* They were touting a guy who made $150k a year trading $500k in of their capital last year. Seriously, $150k? I'm not saying it is anything to sneeze at but any decent trader at a reputable firm makes $100k+ and the best make millions.
* Here is the problem with the compensation structure. They say that your initial goal is to make $11k per month and that they start you with $100k in capital. That means you have to pull an 11% return per month to stay on. I doubt the Goldman Sachs prop desk could consistently pull 11% per month. If you could make 11% per month why would you need them? If you keep that track record up for 3-4 months I am willing to bet you can find someone to back you and you won't need them anyway.
This whole thing (do some research on the firm, the bios, the CORPORATE HQ) looks pretty shady to me and I hope that anyone considering forking out their $595-$795 sees my post before doing so.
The presentation starts off ok. You get the first $4k of trading profits each month and then the split is 65/35 after that. Now here are the problems that I began to see:
* At the end they go into an infomercial type thing where they say that if you sign up in the next 30 minutes (before you can think about it) you can get their study materials for $595 instead of $795. Reminds me of Eric Cartman's gem shopping network.
https://www.youtube.com/watch?v=hvdxxduCWwA
* I would have no problem paying for the study materials but there are other issues. (see below)
* So even if you pay for the "study materials" they only have their weekly mock trading competitions every two months. Only the winner gets to come on board. How many people are trading? 50, 100, 200? If 50 people are trading they have already made $30k selling the "study materials" then your chances are 1/50 and if it is 150 people your odds are 1/150. Even if you are a good trader and don't make it the first time you have to wait two months before you can try again.
* They were touting a guy who made $150k a year trading $500k in of their capital last year. Seriously, $150k? I'm not saying it is anything to sneeze at but any decent trader at a reputable firm makes $100k+ and the best make millions.
* Here is the problem with the compensation structure. They say that your initial goal is to make $11k per month and that they start you with $100k in capital. That means you have to pull an 11% return per month to stay on. I doubt the Goldman Sachs prop desk could consistently pull 11% per month. If you could make 11% per month why would you need them? If you keep that track record up for 3-4 months I am willing to bet you can find someone to back you and you won't need them anyway.
This whole thing (do some research on the firm, the bios, the CORPORATE HQ) looks pretty shady to me and I hope that anyone considering forking out their $595-$795 sees my post before doing so.
I tested the waters with them late last year and ended up dropping their program. They were very crappy when it came to responding to direct questions in my emails; especially when it came to me wanting to use a specific software for better executions, routing, and ticket costs). I felt like they were not even reading my emails until I told them that I had $4500 for their "occasional" opportunity to trade $300k of their capital (which I never gave them). I waited until 2wks passed that 30min deadline to get that packet of theirs. It's all a front. You can get it if you have the cash. Same for signing up to trade extra capital. Btw, that is not a capital contribution either, that is a non refundable fee.
Also, when I took that test of theirs I did not violate any of they testing rules and out of approximately 60 traders they had testing I came in the top six and they still denied me an opportunity to trade with them unless I decided to give them the $4500. They said I was too high frequency for them. I had very small losers and consistent winners. They said I could trade my own way and they lied. What sealed the deal for me was when I requested them to do a U4 for me so I could get my 56, they said "no." When I asked if anyone at the firm had their 56 I was told "nobody" had that license. After that, I gave my capital T3, got registered for the 56, and life has been better since. Better software, better leverage, better profit split, and no b.s.
The packet they will send you, can be gone through in two days time, and if you have any experience in trading it'll be very common sense material. I'd say only about 5% of that information in that package was new and/or valuable to me. These meetings of theirs will be the same two sections discussed over and over and over again until the testing. I never had a single trader who hosted a discussion respond to any of my emails. I only had the same two individuals ever respond to me aside from on one separate occasion. During these seminars I had one trader host say we could not and would never be allowed to be a PDT (I heard him say this on four separate occasions and he made it crystal clear to the group), and then yet in an email someone said I could trade however I wanted.
My personal opinion is that they want people who have no idea how trade, or who only has very limited exposure. I felt it better to go with a real prop firm; one who is registered as a broker dealer. One final note, I did ask over the phone if I could be put in contact with other traders at the firm or who were previously at the firm, so as to have some feedback from their experiences prior checking out $495 (They raised the price on you). Best of luck.
Also, when I took that test of theirs I did not violate any of they testing rules and out of approximately 60 traders they had testing I came in the top six and they still denied me an opportunity to trade with them unless I decided to give them the $4500. They said I was too high frequency for them. I had very small losers and consistent winners. They said I could trade my own way and they lied. What sealed the deal for me was when I requested them to do a U4 for me so I could get my 56, they said "no." When I asked if anyone at the firm had their 56 I was told "nobody" had that license. After that, I gave my capital T3, got registered for the 56, and life has been better since. Better software, better leverage, better profit split, and no b.s.
The packet they will send you, can be gone through in two days time, and if you have any experience in trading it'll be very common sense material. I'd say only about 5% of that information in that package was new and/or valuable to me. These meetings of theirs will be the same two sections discussed over and over and over again until the testing. I never had a single trader who hosted a discussion respond to any of my emails. I only had the same two individuals ever respond to me aside from on one separate occasion. During these seminars I had one trader host say we could not and would never be allowed to be a PDT (I heard him say this on four separate occasions and he made it crystal clear to the group), and then yet in an email someone said I could trade however I wanted.
My personal opinion is that they want people who have no idea how trade, or who only has very limited exposure. I felt it better to go with a real prop firm; one who is registered as a broker dealer. One final note, I did ask over the phone if I could be put in contact with other traders at the firm or who were previously at the firm, so as to have some feedback from their experiences prior checking out $495 (They raised the price on you). Best of luck.
I think that everything GSRXIntensity wrote is correct. Advisors help and present material but it takes a mentor to really teach material. Clarity on the criteria to pass exams would help, as would knowing the number of people actually being promoted, is it 3 out of 65 who tested? I intend to find other opportunities that are open and available now. Can't wait forever as large numbers of applicants from online ads are sorted through. You could be very profitable yourself but if you don't do it a certain way and place very highly on the test .... caveat emptor. Too vague, there's no concrete in the mix.
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They've changed their domain from mainstreetcompany.us to mainstreetsamerica.com. I think originally the website said all would be given the opportunity to trade firm capital. Now it says contingent on testing well. Competitive tests have also been offered, for a fee. There are 'winners', though who knows how many, perhaps 1 in each category. Offers to bypass the test by paying a fee have also been offered, where you guarantee your profitability. Fall 1/3 in the red and it's over, fees not returned. Not sure where that stands now. Seems like the bottom 97% should look elsewhere. There is a point where you just cut your losses.
Same scam different day.