Quote from steve46:
Its amazing to me, that people who aspire to be good professional traders can be such incompetent businessmen.
Context is all that matters. Find out what the context is for operating within this business and you will have all the information you need. The only question you need to answer is "what is the business model these folks are using"?
Private businesses like Bright are appropriate for some, and not for others. It is simply a matter of due diligence. Get the facts, then make your decision "as if" you were competent businessmen.
If this business model (proprietary trading) isn't right for you, find one that is or go into business for yourself.
Is that simple enough?
Good luck
Steve
very well said Steve.
Bright and his brother Don, are some very honest characters!
However, they're evidently not for everyone.
I ran across some characters out of New York, that boasted of their honesty, and were some of the worse persons ever! They still think they did the right thing, and now the SEC and NASD as well as the Justice Department are having ongoing criminal discussions with them. So, what Don warns us all of is and remains quite true.
I also, watched a number of traders hit the desk at another firm, and blow their $25,000 trying to make the much touted method of the firm's trading work, only to their churn, burn, grind and eventual dust off. They quickly cleaned that seat off and offered it to the next bloke coming through the door.
Simply put, do your due diligence. If you can't verify the voracity of the claims of the firm, prop shop, licensed LLC or otherwise, then see if you have to risk putting up funds and have a minimal withdrawal period before you can leave, then don't engage.
The business model should be something you can grasp, apply and get past your learning curve into profit territory, or simply don't get involved with that particular firm.
Due diligence, is so key, and if you can't get consistent answers, then your answer is to look at another firm. Try to do background checks on the principals of the firm. Get proper documents on the firm, and officers and research current legal litigation as well as SEC filings for and against them.
Consider also equity and index option trading which yields leverage sufficient to build your funds in a customer account into a sizeble sum. After achieving leverage and size, reconsider your needs for a prop shop or licensing. Reconsider your needs for ajoining to a firm and consider going it alone.
cheers
