Those 2 examples certainly do not sound like playing to win. They sound like someone very stubborn with little respect for risk. If anyone without endless supplies of cash tried that they'd go belly up.
bob bright
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Those 2 examples certainly do not sound like playing to win. They sound like someone very stubborn with little respect for risk. If anyone without endless supplies of cash tried that they'd go belly up.
Keeping delta neutral with time decay more than makes up for actual share risks in the pair. Both on downside and back up. I do agree, that overall capital should be considered, but percentages are the same. He may have ahd 40,000 shares and someone else could have had 400 shares - always keep risk proportionate to net capital.
Don
Never ever form a "hedge fund" - when you make money trading, you should keep it all - build from within...as most traders should IMO.
(I know you're trying to say something funny and negative, but I thought I would toss out an answer anyway, LOL).
Just one example (asked for by the way) - of thousands of trades over the years. I have to say it's been an interesting ride on the trading train - as participant and observer.
Don
Quote from limitdown:
Don,
I am curious, how often do you have to or had to give that speech?
Also, you mentioned that your July '10 session was going to discuss the changed environment, your threads also said, you invite back other traders too (i.e. no longer with the Brights),
say it isn't so
1. More often than I like to recall....and, mostly to ex-specialists and ex- floor traders - whe just wouldn't adapt to off-floor trading.
2. Yes, (and I get your drift, LOL) - but on a serious note - we re-scheduled our July 3 day class to a September 4/5 day class in order to cover all the regulatory issues that are changing this Summer. We'll give our people as much info as we can during our July 31/Aug1 Intensive retreat weekend...but will have even more "scoop" by September.
Latest news from Banking Reg committee seems to be the stripping of prop trading from the banks.....that will have an immediate impact and explains some of the "rumblings" we see out on the Street.
Aaaahhhh wishing for the "Good Old Days" - our first 10 years, one page agreement, all good, never a hassle - now, well, not so much like that, LOL.
Enjoy your weekend everyone.
Don
You say never form a hedge fund. Why not? They get to trade a much larger bankroll and offload the risk. Quite a racket.
I could say never form a brokerage with the same logic. Who needs the hassle of running a shop and training newbies 365 if you can make millions trading?
I don't get it.
I could say never form a brokerage with the same logic. Who needs the hassle of running a shop and training newbies 365 if you can make millions trading?
I don't get it.
What you mean is if someone is making money hand over fist by exploiting the ignorance of others and there are loopholes in legislation which allows that, then it's OK?
And a 'great trader' in your definition is someone who can trade well but may care nothing how he makes that money?
Too many in this world live by greed and a lack of social conscience or obligation.
I'm sure you would like to ignore my comments, not convenient is it that your attitude which in my opinion sucks ( but you're not alone with that belief system) is challenged?
Nothing to hide here - nothing at all. Making money trading is fine, and a passion - Bob could have 20Billion and still trade - this is his "life" - trading is his party.
At some point quite a while back, Btrading was formed with he and friend Eddie - Bob wasn't able to really put all his money to use at the time, and Eddie was getting deep into the new DOT technology - friends wanted to help develop economies of scale, and the "rest is history" as they say.
All the best,
Don
edit: And, my point about hedge funds does not really apply to those who can raise $100 million or so - and have a plan to make some good money - not just survive on the 3%-5% in "fees." My point is aimed at the hundreds I've spoken with over the years who are basically "borrowing money" from their friends and family - calling it a "hedge fund" (maybe a b $million or so). To give away 80% of profits in lieu of putting up a little cash of their own and keeping 80% or more - again, if they're planning on making money not just keeping fees...well, you see my point.
At some point quite a while back, Btrading was formed with he and friend Eddie - Bob wasn't able to really put all his money to use at the time, and Eddie was getting deep into the new DOT technology - friends wanted to help develop economies of scale, and the "rest is history" as they say.
All the best,
Don
edit: And, my point about hedge funds does not really apply to those who can raise $100 million or so - and have a plan to make some good money - not just survive on the 3%-5% in "fees." My point is aimed at the hundreds I've spoken with over the years who are basically "borrowing money" from their friends and family - calling it a "hedge fund" (maybe a b $million or so). To give away 80% of profits in lieu of putting up a little cash of their own and keeping 80% or more - again, if they're planning on making money not just keeping fees...well, you see my point.
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