Don's openings and more for 2005

Quote from mschey:

Depends on how much capital that was used, If he made 15 mm using 15 or 20 mm of capital, then it was indeed impressive. However, if he used 100 or 200 mm of capital, it's average at best.
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Michael, I'm shocked....we, as traders, "use" capital and do not think of what we do as getting a "ROI" (return on investment). You, I'm sure, and I "use" millions everday to simply make a few hundred grand a year, right? Bob uses less than his net worth, you, on the other hand (as with most traders), use much more than your net worth on a daily basis, right?

I could assume, by your note above, that you are making $millions, since you use $millions every day (we both know that is not necessariy the case, but you get my drift here).

You are a very savvy trader, and you use much more than your own net worth to trade with, and Bob uses less than his net worth...plain and simple.

I am in the same boat as you, in that I "use" more than my net worth (getting better every year, however, LOL).

Bob made just a little more in 2004 than he made in 1984 "using" about the same amount of capital...the difference is that now, he's less than "1 to 1" (cash used vs. equity) where he was using more than "1 to 1) 20 years ago.

I would never think that making millions is simply average, do you really think that it is?

Are you not using at least 10 or 20 times your capital everyday? And, I'm sure that you know, it's harder, not easier, to put more money to good use (hence we have hundreds of traders using our capital).

FWIW, I'm still proud of my brother for several reasons...not just his trading skills, but also for the fact that he can manage to do this well while still running the company.

I realize that you're not slighting Bob or his skill, I'm just trying to point out to those newer traders what is really going on.

Anyway, as always, I wish you the best...keep making money.

Don
 
Don, is Bob real? Or is he really you speaking about himself in the third person? (tongue-in-cheek, as you say)

My follow-up question is: what do you think occurred to Bob to make the transition from table player to trader? Would you mind sharing some insight into that, if you can. I recall that reading something about that a few years ago, and found the story intriguing.
 
Quote from GetWhatUDeserve:

Don, is Bob real? Or is he really you speaking about himself in the third person? (tongue-in-cheek, as you say)

My follow-up question is: what do you think occurred to Bob to make the transition from table player to trader? Would you mind sharing some insight into that, if you can. I recall that reading something about that a few years ago, and found the story intriguing.
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i have read stories of bob taking huge positions in beaten down stocks(millions?) and holding through the pain to eventually make big gains. don could you give us some details on some of these trades?
 
Quote from GetWhatUDeserve:

... is Bob real?

... what do you think occurred to Bob to make the transition from table player to trader?
Would you mind sharing some insight...
More...
From a mostly arms-length view, IMVHO, Bob Bright is an indefatigable, very highly competitive, hands-on, entrepreneurial, fair-minded individual and family man who is intent on utilizing his talents and abilities to the fullest in exploiting the obvious opportunities and the not-so-obvious inefficiencies in the financial markets, as well as the gaming, and real estate arenas.
 
Quote from GetWhatUDeserve:

Don, is Bob real? Or is he really you speaking about himself in the third person? (tongue-in-cheek, as you say)

My follow-up question is: what do you think occurred to Bob to make the transition from table player to trader? Would you mind sharing some insight into that, if you can. I recall that reading something about that a few years ago, and found the story intriguing.
More...

OK, let's go over the whole chronology for Bob. He was an "accountant" for a Fortune 500 company for a decade or so... he then announced to the family that he had sold his home in Fresno, CA. and was moving his wife and 3 young children to Las Vegas to play professional blackjack. He made a committment to play "small" ($5 chips for one full year, keeping track of every game, locations, bet ratio, etc.....showing excellent discipline). On New Years Eve, 1975, he moved from $5 chips to $25 chips, and on to $100 chips (after Midnight, of course, staying true to his one year committment)...I was there with him....and we played for about 8 hours or so....and walked away with nearly $100K (about $80K if I recall correctly). He went on to make Millions over the next couple of years, but found that he could no longer play (due to being barred, etc. on virtually every continent, literally).

He then took what he had learned, applied that knowledge to the "big casino" we all know and love, called "Wall St." - primarily trading options on the PCoast, in 1978...along with our old "Blackjack player" pals, Blair Hull and Eddie Franco. As many know already, Blair (Market Wizards) sold Hull Trading to Goldman a few years ago for a half Billion $$, and Eddie became Bob's partner in Bright Trading in 1992.

Bob moved to Chicago after a short time on the PCoast, started trading the S&P futures doing "across the street arbitrage" against the OEX options....and, as they say, "The rest is history" -
FWIW, I stayed on the PCoast until 1989, and then got "dragged" back into the family business in 1994...to help with the expansion of Bright Trading.

We have been with the same Clearing Firms (SLK) since 1978, and are very proud to have one of the largest professional trading firms in the World....and still owned, 100%, by the family.

(A long answer to a short question)...but that's the Bright story in a nutshell.

All the best,

Don
 
"Both take focus and discipline. In the market, you need to be a little more flexible than you do in card counting, but focus and discipline are the two key ingredients, and understanding numbers is the means of access for both of them, especially with derivative products. We use various kinds of derivative products to give us indicators as to entry points and exit points in the market; just like you might use a count system to make your entry points into a game of blackjack. High count, you know the edge is in your favor, you jump in. With derivative trading in a certain manner, we have the same feel in the market. We jump in when they’re giving us a so-called high count. Most good day traders will make money on 70 or 80 percent of their trades. Just imagine playing blackjack and only making a bet when you have a count in your favor. It doesn’t mean you win every bet, but you’re going to win more than you lose."

The above excerpt I pasted from blackjackforumonline.com. Its an interview with or collaborated by Don and Bob Bright, apparently. If anyone needs to KO it, I understand. But this, I suppose, was the connection I was trying to articulate when I asked my question. I am fascinated by probability games and feel more lucky that I discovered trading is one of them.
 
Quote from GetWhatUDeserve:

"Both take focus and discipline. In the market, you need to be a little more flexible than you do in card counting, but focus and discipline are the two key ingredients, and understanding numbers is the means of access for both of them, especially with derivative products. We use various kinds of derivative products to give us indicators as to entry points and exit points in the market; just like you might use a count system to make your entry points into a game of blackjack. High count, you know the edge is in your favor, you jump in. With derivative trading in a certain manner, we have the same feel in the market. We jump in when they’re giving us a so-called high count. Most good day traders will make money on 70 or 80 percent of their trades. Just imagine playing blackjack and only making a bet when you have a count in your favor. It doesn’t mean you win every bet, but you’re going to win more than you lose."

The above excerpt I pasted from blackjackforumonline.com. Its an interview with or collaborated by Don and Bob Bright, apparently. If anyone needs to KO it, I understand. But this, I suppose, was the connection I was trying to articulate when I asked my question. I am fascinated by probability games and feel more lucky that I discovered trading is one of them.
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Geez, I guess this "internet thing" is actually going to take hold after all...(smiling)...( I just can't seem to hide out anymore, LOL) yes, we both chatted a few years ago with our friend at BJF.....

We have also posted some of the similarities between poker (our family's Christmas tradition for more than 2 decades) and trading. Pretty basic stuff, but if you care to check it out, here's a page: http://www.stocktrading.com/tradingandpoker.htm

All the best...

Don
 
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