Getting into daytrading and starting with Echotrade questions??

Quote from jack7777766:

I Dont know a Nick or a Bryan. How could I figure out whos team Im on??

Do you really think theyll throw me out after going under 2500??
They said they wouldnt, when I asked them just that, but I dont think theyll put that in writting although Ill try to get it. Any suggestion on how to go about it?

Thanks
Jack
More...


I guarantee that almost 99% of all prop firms will require more capital contributed when you lose your initial 2500. Some may alllow you to go negative maybe another 2000. Soon after that you will be called in to an office and you will be asked to put up more money or discontinue trading.

I don't think the deal is bad. One: 75% doesn't matter until you start making real money. It could be 1%, it just doesn't matter. Once you start making money, 99% is what you want if not the full 100%. Remember, everything is negotiable in this business.

Second: .01 a share is not bad to start. Since you may only trade 5k shares a day, that is only 50 bucks for the firm in gross profits, not much at all. Now if you begin trading 20k a day you definately will need to NEGOTIATE that lower, the same for 30k, 40k, 50k, 100k, etc. Obviously the more you trade the lower it should be.

Getting back to the capital issue, I have seen plenty of traders in the past let go at several different firms due to capital deficit issues. Don't let anyone tell you differently.

Later
 
jack7777766


If they would let you go down $100k, then I am worried about the money I have in this firm!
Echo requires a minimum of $2000 in your account to trade. I think if you go below that number, you won't be allowed to trade until you make a deposit. Echo's risk manager, Paul Cogbill, will be watching the equity in your account like a hawk from his office in Chicago. If you get anywhere close to 0, (more like close to $2000), he will close out your positions. It would take a rapid move in a loser for him to let your account go negative and go into the firm's capital. This protective measure is really for your benefit.
Echo is a good firm. Your plan of starting with small lots and having a mentor is a good one. You WILL be able to swing a 60-100k stick, but hopefully will be able to manage the risk it entails. There must have been some misunderstanding about the details of your deal, or Echo's policies towards their traders are becoming less uniform.

Good Luck!
 
Quote from jack7777766:

I Dont know a Nick or a Bryan. How could I figure out whos team Im on??

Thanks
Jack
More...

Go through your recruiter, they should have the details.
 
A friend who I went to college with who was trying to convince me to move to Atlanta told me. He is not a trader, but was researching local firms for me as an alternative to trading from home.

Honestly, there is little chance I move to Atlanta at this point. Great city though!
 
Quote from Joseph Pipp:

Did Echo close their Atlanta office? Is there any prop firm besides ETG with an office there?
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Echo, Bright, Riverstar, and one or two other groups. All in all not a lot of traders in Atlanta like you would think given the size of the city. Some good traders though. Quality over quantity.

:D
 
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