Ok, so if you are new, it is nearly inevitable that you will lose 5 out of the 10K (I mean, I lost 5K when I started in late 2000's, a much better market environment, and not even Don Bright can label my learning curve, at 3 and 1/2 months to go positive, worse than average).
Sure, if you are gifted may be you can avoid that, but most people I know lost more than I did before turning it around.
5 * 5 = 25K, or 300 shares, 2 positions for a $40 stock.
I don't think that's going to cut it if you are trying to make back the 5K you lost. You be the judge. I personally think you need more than 10K, if my above calculation is true, to make it in Echo, or anywhere on this planet for that matter, except Worldco.
The trader on my squad who just turned positive was facing a 5K deficit (all firm capital), and he had a 500 shares 4 positions limit, later in his winning streak, raised to 700 shares 6 positions. When futures ripped hard he would take 1500-2000 shares. He had a 12 out of 13 games winning streak, and I don't think you can be much more efficient than that, to go back in the black. He takes no less than 1000 shares at once during first and last hour.
Even if you don't lose a single dime of your 10K, you do not have that kind of trading power.
This is precisely why I said Echo & Bright are glorified brokerage services (once you lose your money you are gone), while Worldco is a true opportunity. Does Bright offer 10x leverage too? If that is the case I just found a great argument against Don and his boys.
What is the monthly fee again? Once you are pinned down to 2 positions 300 shares, you will hardly be able to make back the desk fees, and it will take a really long time before you can turn it around.
That said, if you trade Nasdaq, then by all means go with Echo, if you do listed, please look over my math (and no it is not Don Bright math), and let me know (of course, e-mail me with that additional information I requested).
No wonder our owner didn't rush out to compete with Echo for those with 10K contributions. I personally don't think you can make it with 10K. Hell, right now, if I have 10K, that just 50K, 500 shares, 2 positions, I don't think I can make MCD money in this market with that kind of buying power.
Why slow your growth as a trader because you don't have a tons of money? I had 3000 shares, 16 positions, when I had just 15K in my capital account, you do the math.
As a friend, even if you put up less capital and get a worse deal than Echo (believe me it won't be anywhere even close to 1.5 cent a share if you put up a few grand), it should still be a much better choice.
Now let me do some math against Bright, 25K at 10x leverage it becomes a closer call. The guy loses 5K. He has 20K left. 200K buying power. 2000 shares of a $50 stock. It is still much lower than what I worked with when I just turned net positive overall, but it is at least doable.
Still, I have a guy at my firm who made 1.5 million last year, and he has 25K in his capital account (I can show you his account statement if you come to my office now that I am a team leader, without his name of course), needless to say, he trades bigger size than 2000 shares at a time
Anyway, I just threw some ideas for all Bright/Echo supporters to chew through. Damn, I am happy I started with Worldco. (Very cheesy Don Bright like comment)
