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Getting started with a Prop Firm (My experience - ongoing!) Lake Street Trading
- Thread starter Dusky323
- Start date
Quote from cgroupman:
You're buying over a 1,000 shares of what? $5k x 7 = $35K. Buy once, and you're done until you sell it? Is that how it works? $10k maximum for holdover trades?
Have you looked at Velez, Vaccarro, Tuco, and the results for traders? It's hard enough to make money trading.
c
I'm using my TD account for overnight trades. I'm using LakeStreet for Day trades only, mostly scalps so I'm in and out of trades. Many of these trades are $3-5/share and I might be into them anywhere from $5k-$10k per trade which is more than 1000 shares. I'm usually never in more than 3 stocks at a time so I don't really get near the 35k BP, not yet anyway...it is only Day 3. I think I must be extremely lucky because I made a pretty steady wage with TD Ameritrade over the past 1.5-2yrs just doing 3 Day Trades a week and some overnighters. So far in the first 3 Days of unlimited the pattern continues. Time will tell.
Oh, I see now. Penny stocks. Hope that works out for you. According to my people, they are 100% margin under $5.00 anyway. So, I don't see any edge with a prop firm. But, I wish you well.Quote from Dusky323:
I'm using my TD account for overnight trades. I'm using LakeStreet for Day trades only, mostly scalps so I'm in and out of trades. Many of these trades are $3-5/share and I might be into them anywhere from $5k-$10k per trade which is more than 1000 shares. I'm usually never in more than 3 stocks at a time so I don't really get near the 35k BP, not yet anyway...it is only Day 3. I think I must be extremely lucky because I made a pretty steady wage with TD Ameritrade over the past 1.5-2yrs just doing 3 Day Trades a week and some overnighters. So far in the first 3 Days of unlimited the pattern continues. Time will tell.
c
Quote from textrader4:
This is the post I was referring to earlier...I did this when I was considering joining Lake Street and ran (not walked) away as fast as I could!!:
Before joining any firm that is not an SEC registered Broker Dealer, please call the Office of Interpretation and Guidance of the SEC at (202) 551-5777. Tell them this: I want to join this firm and trade stocks. They say they don't need to be registered. The name of the firm is (fill in the blank and direct them to the firms website). I pay them a commission, send money as a security deposit, am responsible for all my losses, and they pay me out 100% of my profits. They claim they are exempt from SEC registration of Securities Exchange Act of 1934 Section 3(a)(4)(A). Also, they solicited me on a public forum. I am concerned that they are operating an unregistered Broker Dealer"
I urge anyone as part of their DD to do this for any firm they wish to join that is not a SEC registered BD. It will be a real eye opener!
Also, this will put them on the SEC's radar.
LOL someone working for the SEC now? We pay them enough with our taxes, let them figure it out on their own.
I posted a news story on another thread. 4 unregistered BDs just got busted by the SEC. Literally yesterday. I wouldn't send one penny to them, and I'd withdraw your $$ now.
Registered bds may be a different story, but you'd better do your due diligence there too.
Registered bds may be a different story, but you'd better do your due diligence there too.
Do a Google search on those firms. None of them appeared to be holding themselves out as BD's or even as prop firms. Something else is going on here that is not clear from the SEC release.Quote from SgtSlottter:
I posted a news story on another thread. 4 unregistered BDs just got busted by the SEC.
Kevin, included in the SEC's lawsuits (posted on SEC.gov), among the other charges, all of these companies are accused of acting as unregistered broker dealers.
There are diagrams, details of deals with traders etc. Its pretty clear these guys were just trying not to be registered but they got busted because some crook took advantage of them attempting to ignore the requirements of actually registering.
Its pretty interesting reading. Lots of insight into how these guys were operating and attempting to avoid the rules. Shocking they didn't do a better job, since some of them were involved in Tuco as well.
There are diagrams, details of deals with traders etc. Its pretty clear these guys were just trying not to be registered but they got busted because some crook took advantage of them attempting to ignore the requirements of actually registering.
Its pretty interesting reading. Lots of insight into how these guys were operating and attempting to avoid the rules. Shocking they didn't do a better job, since some of them were involved in Tuco as well.