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Don Bright and a losing trader
- Thread starter NY_HOOD
- Start date
Quote from enforcer99:
what i don't understand about an LLC/prop firm. lets say you put up 6 k and with leverage lose 12k. the firm is actually down 6k; what does the firm do if the guy or girl has no way to pay the firm?
You probably won't get that far unless the market has some sort of once-a-decade meltdown in minutes. Your position size would be controlled such that even if the markets tanked hard, they would feel relatively sure that they could close your positions without going down twice what you put up. That's based on what I have heard from a bunch of guys here who trade prop.
It's good to understand the difference between prop and pro.
but if a guy gets 6k in the hole,how would a firm recoup the money if cannot pay it. assuming its a regular prop/llc trading group ? i would think if its under 10k the legal costs would outweigh the legal action? i was actually thinking of backing a guy with an llc but that thought haunts me. then again the group could go under as well.
Quote from enforcer99:
but if a guy gets 6k in the hole,how would a firm recoup the money if cannot pay it. assuming its a regular prop/llc trading group ? i would think if its under 10k the legal costs would outweigh the legal action? i was actually thinking of backing a guy with an llc but that thought haunts me. then again the group could go under as well.
The costs are under 1k and can be done real easy. A friend of mine who is a lawyer would take on a case like this for 500.00. Get a judgement in court and so on. Not much work if you have proof of the debt and failure to comply with a commitment to pay it back. About 1 hr of work and 500 an hr is not that bad
Like i said before it depends, trader was a trouble maker then they will get the guy. Nice guy down on his luck they may over look it.
There is always help availbale if, one is to need it;
there are managers, mentors, successful traders
and buddies ( other traders).
One should not forget, this is an entreprenurial
endeavor thus, one should take responsibility
for their trades and education. Should you wish
supervision then, then seek employment not
independence.
Goodluck.
there are managers, mentors, successful traders
and buddies ( other traders).
One should not forget, this is an entreprenurial
endeavor thus, one should take responsibility
for their trades and education. Should you wish
supervision then, then seek employment not
independence.
Goodluck.
Quote from enforcer99:
but if a guy gets 6k in the hole,how would a firm recoup the money if cannot pay it. assuming its a regular prop/llc trading group ? i would think if its under 10k the legal costs would outweigh the legal action? i was actually thinking of backing a guy with an llc but that thought haunts me. then again the group could go under as well.
A trader should never be in that position in the first place, you can objectively manage risk, but there's risk managers constantly watching position sizing, that's what margin calls are for.
Quote from Joab:
Keep your spam to yourself jack off !!!
Don are you hurting for traders that bad that you need to stoop to this level of spamming ???
I believe Bright had a banner year last in 2007...450-500 traders, i really don't think the firm is hurting (with many tossing good size around). Maybe you're a disgruntled trader that did blow his account and is bitter at the firm, that doesn't mean everyone else did.
Quote from traderpro:
The costs are under 1k and can be done real easy. A friend of mine who is a lawyer would take on a case like this for 500.00. Get a judgement in court and so on. Not much work if you have proof of the debt and failure to comply with a commitment to pay it back. About 1 hr of work and 500 an hr is not that bad
Like i said before it depends, trader was a trouble maker then they will get the guy. Nice guy down on his luck they may over look it.
the trader counter sues for the firm not providing proper risk controls, not understanding the contract, etc etc--
then costs are way more than the loss, regardless of outcome.
gotta be very very careful filing suit in these cases in my opinion.
surf
Quote from GGSAE:
I believe Bright had a banner year last in 2007...450-500 traders, i really don't think the firm is hurting (with many tossing good size around). Maybe you're a disgruntled trader that did blow his account and is bitter at the firm, that doesn't mean everyone else did.
Don,
Seriously !
I use to have a lot of respect for you but do these bozo's really believe this nonsense.